Tax Time

HEY J.
I can't remember which regulation no. it is, but I did research on this subject a few months ago. I too do not have a VI DL (for shame). Under the regs. you file in the VI, that is the VI Revenue, if you are a bona fide resident of the territory on the last day of the tax year. So, I moved here in July and will only file in the VI.

Oh, I found a URL on the irs website:

http://www.irs.gov/businesses/small/international/article/0,,id=97183,00.html

Good luck!

I think there are other regulations to consider as well, I was under the impression that if you worked in the mainland US for a greater part of the tax year that you could file back home. I am not sure though. I am going to try and find out.

--Islander

From my understanding, if you moved to the VI on Dec. 25th with the intention of residing in the VI, you would only file here. If, however, you are a seasonal resident, i.e. Dec-Mar., you may need to file in both places depending on earnings, etc. If there is a CPA familiar with territorial residents out there...PLEASE HELP US!

I guess my main question is...What makes you a "bona fide" resident. For instance in TX you have to have resided in a permenant residence for 6 months, and get a TX DL or ID card.

I figured out that if I am not a resident I get a form called 8689 from the IRS, file in the states then send a copy of that filing to the VI along with any taxes owed the VI due to local income. If I am a resident I just pay it all here, including taxes and revenue generated in the states..................i'm pretty sure.

Thanks for the leads Onika.

If anyone can answer this "bona fide" question....I would be very grateful.

Thanks again,
J in STX

I believe in the USVI it works similarly, you have to have resided there for a set period of time, have a VI drivers license or voters registration or work there permanently.

Hey Ronnie - do you know???

--Islander

I am having trouble understanding the bona fide part- you should file your taxes where you make your home...having a driver's license and owning property have nothing to do with it. (However, if you get stopped with a stateside license, the first question will be "How long have you lived here?" and if you own a car which was registered more than three months ago...) Most people prefer to file here because of no state tax. BTW, in case no one has warned you, get your license before your stateside one expires!

When you start asking for advice on how to perform surgery on your own from a website that's just about the same time you should ask for professional (tax, medical, investments, structural,...etc.) advice about other topics on a bulletin board that let's EVERYONE, including me, post to it. For a few well spent dollars you can visit with a professional on this topic.

I asked....

moved and worked in vi - The tax law is that you are a vi resident and file your tax return
in the usvi if you lived here the last day of the year. You could be in the
states for 11 1/2 months and moved in dec and you would file your worldwide
income in the vi.

moved from vi to mainland - if you moved to the states anytime during the year,
you're still required to file here in the vi. But then you also file in the states
and use a form 8689 to prorate the income between the vi and the us. Of
course if you didn't have vi income, you wouldn't have to file here.

Hope that helps.

--Islander