Telecommuting/Remote work

Same situation. Let me know how the move to FL goes. I plan on doing the same thing. My company has an office there, and I want to move my seat to that office. 

I’m currently contemplating going off grid. (Solar with batteries)

Yes, WAPA’s rates are high, and continue to rise, but a steady, dependable flow of electricity is probably my biggest concern. If your going to run any kind of business which requires telecommunications, finding a residence with a dependable, independent power grid should be a priority for you. 

From further research, interstate taxation is a complicated issue for many companies. My guess is that the cost for a company to set up a tax withholding relationship and maintain it with any given state could cost $15K though that does seem high. A traveling employee could theoretically owe state income taxes in every jurisdiction to which he/she travels.

What's different about the VI is it's a territory and not a state. The IRS Bona Fide residency policy, in most cases, would remove the employer's responsibility to set up any type of formal relationship with the VI BIR. Your tax home would be where your employer is located by definition of tax home and your responsibility is to pay taxes to the IRS but would have no state tax to pay. 

The complication would be an accountant wanting to withhold taxes on behalf of the VI like he/she would for a state which would be impossible and not required. Easier to say no than to figure it out.

You are my hero Gator's Mom. In the scenario outlined above, does it matter if you are bona fide or not?

Posted by: aadziemiela

You are my hero Gator's Mom. In the scenario outlined above, does it matter if you are bona fide or not?

You won't be a bona fide resident of the VI as long as your employer is on the mainland. 

https://www.irs.gov/publications/p570#en_US_2011_publink1000221340

In the info mentioned by Gators mom:

f you are a bona fide resident of the USVI and have non-USVI source income, you also must file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands. Attach Form 1040INFO to your USVI tax return before filing. You can get Form 1040INFO by contacting the address or website given earlier.

If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:

Posted by: Exit Zero

In the info mentioned by Gators mom:

 

f you are a bona fide resident of the USVI and have non-USVI source income, you also must file Virgin Islands Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents, with the Virgin Islands. Attach Form 1040INFO to your USVI tax return before filing. You can get Form 1040INFO by contacting the address or website given earlier.

If you are a bona fide resident of the USVI for the entire tax year, file your return and all attachments with the Virgin Islands Bureau of Internal Revenue at:

Bureau of Internal Revenue
6115 Estate Smith Bay
St. Thomas, VI 00802

 

 

****If you reside in the USVI for over 183 days - you are a bona fide resident.

To be a bona fide resident you have to meet 3 tests.

The tax code generally defines a “bona fide resident” as a person who

1) is present for at least 183 days during the tax year in the Virgin Islands;
2) does not have a tax home outside the Virgin Islands during the tax year and
3) does not have a closer connection to the U.S. or a foreign country than to the possession.

If you are a remote worker whose employer is on the mainland you will not pass the tax home or closer connection tests. Consequently, you cannot be a bona fide resident of the VI for tax purposes.

Any update on the original topic? Did your company approve it?

I am going through the exact same situation now with a Fortune 500 company - I got approval from my leadership to work remotely in USVI temporarily (10 months - coming back stateside 1x per month), but blocked by HR with the reason that the company would need to register in USVI if that is where I am working from (and they are unwilling to do that).  I will not be a bona-fide resident in USVI (will def. be more stateside than USVI), but does that make a difference for the company needing to register?

Read through IRS Publication 570 to get an idea of how earned income is treated, what is taxable to VI and therefore what employer withholding is done for the VI.