Publication 54 - Tax Guide For U.s. Citizens And U.s. Citizens Abroad

Fulbright grants. All income must be re-

ments, forms, and schedules) with the Virgin

which the injury or wounds were incurred and

ported in U.S. dollars. In most cases, the tax

Islands Bureau of Internal Revenue.

ending with the year of death.

must also be paid in U.S. dollars. If, however, at

The amount of tax you must pay to the Virgin

If the deceased government employee and

least 70% of your Fulbright grant has been paid

Islands is figured by the following computation:

the employee’s spouse had a joint income tax

in nonconvertible foreign currency (blocked in-

liability for those years, the tax must be divided

Total tax on U.S. return

V.I. AGI

come), you can use the currency of the host

between the spouses to determine the amount

(after certain adjustments)

country to pay the part of the U.S. tax that is

Worldwide AGI

forgiven.

based on the blocked income. To determine the

For more information on how to have the tax

amount of the tax that you can pay in foreign

Form 8689, Allocation of Individual Income Tax

forgiven or how to claim a refund of tax already

currency, get Publication 520. You may also be

to the Virgin Islands, is used for this computa-

paid, see Publication 559, Survivors, Executors,

able to get details of these arrangements from

tion. You must complete this form and attach it to

and Administrators.

the U.S. Educational Foundations or Commis-

your return. You should pay any tax due to the

sions in foreign countries.

Virgin Islands when you file your return with the

Virgin Islands Bureau of Internal Revenue.

Where To File

Nonresident Spouse

You should file your U.S. return with the

Internal Revenue Service Center, Philadelphia,

If any of the following situations apply to you, file

Treated as a Resident

PA 19255 – 0215.

your return with the:

See Publication 570, Tax Guide for Individu-

als With Income From U.S. Possessions, for

If, at the end of your tax year, you are married

Internal Revenue Service Center

information about filing Virgin Islands returns.

and one spouse is a U.S. citizen or a resident

Philadelphia, PA 19255 – 0215.

alien and the other is a nonresident alien, you

Resident of Guam

can choose to treat the nonresident as a U.S.

If you are a resident of Guam on the

resident. This includes situations in which one of

1) You claim the foreign earned income ex-

last day of your tax year, you should file

you is a nonresident alien at the beginning of the

clusion.

a return with Guam and pay your tax on

tax year and a resident alien at the end of the

income you have from all sources to the:

year and the other is a nonresident alien at the

2) You claim the foreign housing exclusion or

end of the year.

deduction.

Department of Revenue and Taxation

If you make this choice, the following two

3) You claim the exclusion of income for

Government of Guam

rules apply.

bona fide residents of American Samoa.

P.O. Box 23607

GMF, GU 96921.

4) You live in a foreign country or U.S. pos-

1) You and your spouse are treated, for in-

session and have no legal residence or

come tax purposes, as residents for all tax

However, if you are a resident of the United

principal place of business in the United

years that the choice is in effect.

States on the last day of your tax year, you

States.

should file a return with the United States and

2) You must file a joint income tax return for

pay your tax on income you have from all

The exclusions and the deduction are ex-

the year you make the choice.

sources to the Internal Revenue Service Center,

plained in chapter 4.

This means that neither of you can claim tax

Philadelphia, PA 19255 – 0215.

If you do not know where your legal resi-

treaty benefits as a resident of a foreign country

See Publication 570, Tax Guide for Individu-

dence is and you do not have a principal place of

for a tax year for which the choice is in effect.

als With Income From U.S. Possessions, for

business in the United States, you can file with

You can file joint or separate returns in years

information about filing Guam returns.

the Philadelphia Service Center. The address

after the year in which you make the choice.

for the Philadelphia Service Center is shown

Resident of the Commonwealth of the

above.

Northern Mariana Islands

Example 1. Pat Smith, a U.S. citizen, is

However, you should not file with the Phila-

married to Norman, a nonresident alien. Pat and

If you are a resident of the Common-

delphia Service Center if you are a bona fide

Norman make the choice to treat Norman as a

wealth of the Northern Mariana Islands

resident of the Virgin Islands or a resident of

resident alien by attaching a statement to their

on the last day of your tax year, you

Guam or the Commonwealth of the Northern

joint return. Pat and Norman must report their

should file a return with the Northern Mariana

Mariana Islands on the last day of your tax year.

worldwide income for the year they make the

Islands and pay your tax on income you have

choice and for all later years unless the choice is

from all sources to the:

Resident of Virgin Islands

ended or suspended. Although Pat and Norman

If you are a bona fide resident of the

must file a joint return for the year they make the

Division of Revenue and Taxation

Virgin Islands on the last day of your

choice, they can file either joint or separate re-

Commonwealth of the Northern Mariana

tax year (even if your legal residence or

turns for later years.

Islands

principal place of business is in the United

P.O. Box 5234, CHRB

States), you generally are not required to file a

Example 2. Bob and Sharon Williams are

Saipan, MP 96950.

U.S. return. However, you must file a return with

married and both are nonresident aliens. In June

However, if you are a resident of the United

the Virgin Islands and pay your tax on income

of last year, Bob became a resident alien and

States on the last day of your tax year, you

you have from all sources to the:

remained a resident for the rest of the year. Bob

should file a return with the United States and

and Sharon both choose to be treated as resi-

Virgin Islands Bureau of Internal Revenue

pay your tax on income you have from all

dent aliens by attaching a statement to their joint

9601 Estate Thomas

sources to the Internal Revenue Service Center,

return for last year. Bob and Sharon must report

Charlotte Amalie

Philadelphia, PA 19255 – 0215.

their worldwide income for last year and all later

St. Thomas, Virgin Islands 00802.

See Publication 570 for information about

years unless the choice is ended or suspended.

filing Northern Mariana Islands returns.

Bob and Sharon must file a joint return for last

Non-Virgin Islands resident with Virgin Is-

year, but they can file either joint or separate

lands Income. If you are a U.S. citizen or

returns for later years.

resident and you have income from sources in

Terrorist or Military Action

the Virgin Islands or income effectively con-

Social Security

nected with the conduct of a trade or business in

U.S. income taxes are forgiven for U.S. Govern-

Number (SSN)

the Virgin Islands, and you are not a bona fide

ment military or civilian employees who die as a

resident of the Virgin Islands on the last day of

result of wounds or injuries sustained outside

If your spouse is a nonresident alien and you file

your tax year, you must file identical tax returns

the United States in a terrorist or military action

a joint or separate return, your spouse must

with the United States and the Virgin Islands.

directed against the United States or its allies.

have either an SSN or an individual taxpayer

File the original return with the United States and

The taxes are forgiven for the tax years begin-

file a copy of the U.S. return (including all attach-

ning with the year immediately before the year in

identification number (ITIN).

Chapter 1 Filing Information

Page 5

Publication 54 - Tax Guide For U.s. Citizens And U.s. Citizens Abroad - 2001 Page 5

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