Tax Filling - USVI VS Mainland US  

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CaptainMalibu
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March 18, 2016 9:23 pm  

A decision I will need to make within the next year or so is where to file my income tax return. As I understand it, since I have US income, I will have the option to file as a USVI resident or my regular US filing. Anyone have experience in this area have any advice or information to share?


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jj00802
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March 18, 2016 10:15 pm  

You do get the option of where to file, it depends if you qualify as a USVI resident or not. If a resident of the USVI, the federal tax return is filed with the VI Bureau of Internal Revenue (allocating stateside income on Form 1040info). I

see IRS publication 570
https://www.irs.gov/pub/irs-pdf/p570.pdf

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Basically, you need to consult with an accountant in the USVI who is familiar with the tax filing in the USVI.


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OldTart
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March 18, 2016 10:16 pm  

I don't think you have a choice. Regardless where your income originates if you're a bona fide resident of the USVI by a certain date you pay your taxes here. This link should help explain:

https://www.olt.com/main/usteri/virginislands.asp


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ms411
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March 19, 2016 12:32 am  

Why do people ask complicated legal and tax questions on online forums?

IMO, you need to check the VI code to see if you meet the qualification for bona fide resident for taxes. If you have stateside and VI income you may need to file in both places but taking a credit in one place or the other. Many people file in both places depending on when and where they received income during the year.


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jj00802
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March 19, 2016 4:58 am  

OOPs...not sure how I can edit prior message.

The first line should say:
You do NOT get the option of where to file!!!!

You do get the option of where to file, it depends if you qualify as a USVI resident or not. If a resident of the USVI, the federal tax return is filed with the VI Bureau of Internal Revenue (allocating stateside income on Form 1040info). I

see IRS publication 570
https://www.irs.gov/pub/irs-pdf/p570.pdf

-
Basically, you need to consult with an accountant in the USVI who is familiar with the tax filing in the USVI.


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Ca. Dreamers
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March 19, 2016 11:08 am  

OOPs...not sure how I can edit prior message.

The first line should say:
You do NOT get the option of where to file!!!!

Now you got it right.:-)

CD

You do get the option of where to file, it depends if you qualify as a USVI resident or not. If a resident of the USVI, the federal tax return is filed with the VI Bureau of Internal Revenue (allocating stateside income on Form 1040info). I

see IRS publication 570
https://www.irs.gov/pub/irs-pdf/p570.pdf

-
Basically, you need to consult with an accountant in the USVI who is familiar with the tax filing in the USVI.


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CruzanIron
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March 19, 2016 11:13 am  

Deleted.

Someone else already referred to publication 570.


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CaptainMalibu
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March 19, 2016 1:01 pm  

Thanks jj and OT for the referral to the publications. They clarified for me the answer to my question.


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Scubadoo
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March 19, 2016 5:59 pm  

The first line should say:
You do NOT get the option of where to file!!!!

Yeah, I figured. I do that a lot myself. Changes the meaning a bit:D


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rosesisland
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March 20, 2016 12:20 pm  

If you live here, you file here, period! This IS your Federal tax obligation paid here. My husband works 1/2 year in Massachusetts. I have a Trust in Arkansas. So, we file in Massachusetts, Arkansas and our federal is filed here. It's not complicated. Oh, we moved back in November of a year and we filed here for that year.


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Scubadoo
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March 21, 2016 3:45 am  

If you live here, you file here, period! .

Bona fide residents i.e. 26 CFR 1.937-1 - Bona fide residency in a possession. A taxpayer will qualify as a bona fide resident of the Virgin Islands if the taxpayer can satisfy all of the following three criteria:
(1) The presence test.
(2) The tax home test.
(3) The closer connection test.


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vicanuck
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March 22, 2016 7:40 pm  

Always remember to try to never end up with the government owing you a refund. It can take years to get your tax refund check. The interest they pay is just not worth it.


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OldTart
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March 22, 2016 8:17 pm  

Always remember to try to never end up with the government owing you a refund. It can take years to get your tax refund check. The interest they pay is just not worth it.

Beg to disagree. Several years ago I finally received a refund cheque after a couple of years and the (federally mandated) added interest was more than equable.


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CruzanIron
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March 22, 2016 9:48 pm  

Always remember to try to never end up with the government owing you a refund. It can take years to get your tax refund check. The interest they pay is just not worth it.

Beg to disagree. Several years ago I finally received a refund cheque after a couple of years and the (federally mandated) added interest was more than equable.

4% interest. Backed by the government. And they never send a 1099, so it is tax free. Can't beat that deal.


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Spartygrad95
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March 22, 2016 10:19 pm  

I thought Mapp released all the 2014 returns after hitting the lottery with the Hovensa deal? There better not be bullet proof limos until they pay me my paltry amount due. I stopped in VIBIR office today and they said mine still hasn't been processed.


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speee1dy
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March 23, 2016 2:34 pm  

still did not get mine.


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Matt
 Matt
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March 24, 2016 10:08 am  

I had my employer stop taking tax out of my check, opened another checking account and made a direct deposit for the amount they were taking out. That way on April 15, I will pay them what's owed and I don't have to wait till Christmas to get what's left over!

Matt


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vicanuck
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March 24, 2016 11:09 am  

I would never trust the GVI with my money, no matter how small the amount.


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Gator's Mom
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March 24, 2016 5:02 pm  

I had my employer stop taking tax out of my check, opened another checking account and made a direct deposit for the amount they were taking out. That way on April 15, I will pay them what's owed and I don't have to wait till Christmas to get what's left over!

For your reading pleasure - just in case.

https://www.irs.gov/publications/p505/ch04.html


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Scubadoo
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March 25, 2016 12:32 am  

I had my employer stop taking tax out of my check, opened another checking account and made a direct deposit for the amount they were taking out. That way on April 15, I will pay them what's owed and I don't have to wait till Christmas to get what's left over!

I didn't even think it was legal for an employer to not withhold the tax for direct employees. Are they still paying their half of your SS tax? In any case if your employer is not withholding then you have to make the quarterly estimated tax payments or you will have a penalty due with your return.


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stjohnjulie
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March 25, 2016 6:59 am  

I have not received my 2014 tax return. But I DO receive 1099's when I have interest due. I had a hefty one this year because I finally got my 2010, 2011, 2012 refunds in 2015. I'm going to be due a big refund for 2015, it was unavoidable unless I just wanted to give it to them, but I am not hopeful in seeing it anytime in the next couple of years. If I do, I'll just be pleasantly surprised. It's a dumb move to pay all the small refunds and hold the large ones. Just means they end up having to pay a lot more interest.


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