I've been using TurboTax for years, but tonight I realized yet another adjustment I am going to have to make due to my move to STX a little less than a year ago. How do I file my VI W2?! Does TurboTax have an option? I have a really easy return - I don't want to have to pay someone $100 just to do this for me, and I love that TurboTax always keeps my info on file . . . HELP!?!?!
Well, for various reasons I have to get the super-duper fullest featured version, and I do NOT get a w-2 vi but I get 1099s and my wife gets a w2. @Jim, that version has had no difficulty in taking out self-employment tax.
There are some things that TurboTax won't do for you as a VI resident:
- Zero out your self-employment tax on your 1040 form, and move that tax to a form 1040-SS, which you then file and pay to the feds (Because later the feds will pay your SS benefits, the VI won't. If you do this wrong, you're going to overpay the VI and underpay the feds, giving you a simultaneous big refund and an annoying penalty. If you're not self-employed, this won't affect you.)
- Tell you to hand-submit your tax forms and a copy to the VIBIR and get the copies stamped as received and handed back to you (So you can defend yourself later when the VIBIR accuses you of not filing)
- A few years ago, there was a certain federal telephone tax credit offered. If you entered it on the 1040 like TurboTax told you to, you lost out because the VI wasn't going to give you the credit, the feds were. You had to file a separate tax form (1040-TT or something) to get the feds to pay you. By the time the VIBIR informed you of that, it was too late to claim it.
I use Taxcut Deluxe which is very similar and all the forms for an employee (I'm not self-employed) are included and really are the exact same ones you use for a mainland return. The big difference is that you can't file electronic returns for USVI and from what I've read even if you file your paper copy early expecting a refund it will take months before you see your money.
I'm hoping I can qualify for a non-local return again this year but don't think I can unfortunately...
You send your SE taxes to the USA and not the USVI. The income tax on your self employment earnings go to the USVI. That is the problem th tax software has as do many stateside CPAs. If you screw it up you have both the IRS and the IRB on your case. I have been fighting in out for over two years regarding my 2006 taxes.
A few questions on self-employment tax:
1) Does "self employment tax" mean the entire 15% of the SSI/Medicare or only 7.5% (the part that is over what employees pay)?
2) If self employment tax should go to IRS - who do I send the estimated tax checks to? Do I mail the entire amount to the fed? Do I need now to calculate the "income" and the "self employment" portions separately and mail two checks - one to IRB and one to IRS?
3) What about that "gross receipts" tax or "tax surcharge"? I've been reading here and there about it - is there any additional tax on self-employment income here beyond what's taken stateside?
This site's spam filter is preventing me from posting my full answers, so I sent a PM to br1k. The short answers are:
1) The entire 15%
2) Send separate estimated payments to the IRB and feds
3) Yes, businesses have to pay a Gross Receipts Tax. Ask the IRB for the form. File by Jan 30, or monthly, if you gross enough.
The VIBIR form "1040INFO 2009 Non-Virgin Islands Source Income of Virgin Islands Residents" is at http://www.viirb.com/pdfs/1040_Info_2009.pdf but the site is currently down.
Here is Google's cached version of the form: