IRS Form 8689 2017 Allocation of Individual Income Tax to the U.S. Virgin Islands

IRS Form EIB-SBA8689, "Allocation Of Individual Income Tax To The U.s. Virgin Islands" is a tax form issued by the United States Internal Revenue Service. The latest version of the form was released in January 1, 2017. A up-to-date fillable EIB-SBA8689 Form in PDF is available for download below.

The "Allocation Of Individual Income Tax To The U.s. Virgin Islands" can be filed digitally and submitted online or printed out and sent to the IRS mailing address.

ADVERTISEMENT
8689
Allocation of Individual Income Tax
OMB No. 1545-0074
2017
Form
to the U.S. Virgin Islands
Attach to Form 1040.
Department of the Treasury
Attachment
85
Go to www.irs.gov/Form8689 for the latest information.
Internal Revenue Service
Sequence No.
Name(s) shown on Form 1040
Your social security number
Part I
Income From the U.S. Virgin Islands (USVI)
1
Wages, salaries, tips, etc.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1
2
Taxable interest .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
3
3
Ordinary dividends .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4
4
Taxable refunds, credits, or offsets of local USVI income taxes .
.
.
.
.
.
.
.
.
.
.
.
5
Alimony received
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
6
Business income or (loss)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Capital gain or (loss) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
8
8
Other gains or (losses)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9
9
IRA distributions (taxable amount) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
Pensions and annuities (taxable amount)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
11
Rental real estate, royalties, partnerships, S corporations, trusts, etc. .
.
.
.
.
.
.
.
.
.
11
12
Farm income or (loss) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
12
13
Unemployment compensation .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
14
Social security benefits (taxable amount)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
15
Other income. List type and amount
16
Add lines 1 through 15. This is your total USVI income
.
.
.
.
.
.
.
.
.
.
.
.
.
16
Part II
Adjusted Gross Income From the USVI
17
Educator expenses
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17
18
Certain business expenses of reservists, performing artists, and
18
fee-basis government officials .
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Health savings account deduction
.
.
.
.
.
.
.
.
.
.
.
.
19
20
Moving expenses .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
21
Deductible part of self-employment tax .
.
.
.
.
.
.
.
.
.
.
21
22
Self-employed SEP, SIMPLE, and qualified plans .
.
.
.
.
.
.
.
22
23
23
Self-employed health insurance deduction .
.
.
.
.
.
.
.
.
.
24
Penalty on early withdrawal of savings
.
.
.
.
.
.
.
.
.
.
.
24
25
IRA deduction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
25
26
Student loan interest deduction
.
.
.
.
.
.
.
.
.
.
.
.
.
26
27
Tuition and fees deduction .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
27
28
28
Add lines 17 through 27 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
29
Subtract line 28 from line 16. This is your USVI adjusted gross income .
.
.
.
.
.
.
.
29
Part III
Allocation of Tax to the USVI
30
Enter amount from Form 1040, line 63
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
30
31
Enter the total of the amounts from Form 1040, lines 57, 58, 60a, 66a, 67, 68, 73 (boxes c and d). Include any uncollected social
security and Medicare or tier 1 RRTA tax, tax on excess golden parachute payments, or excise tax on insider stock compensation
31
reported on line 62. Also include any amount from Form 5329, Parts III, IV, V, VI, VII, VIII, or IX reported on Form 1040, line 59
.
32
Subtract line 31 from line 30
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
32
33
Enter amount from Form 1040, line 38
.
.
.
.
.
.
.
.
.
.
.
33
×
34
Divide line 29 above by line 33. Enter the result as a decimal (rounded to at least 3 places). Do not enter more than 1.000
34
.
35
Multiply line 32 by line 34. This is your tax allocated to the USVI
.
.
.
.
.
.
.
.
.
.
.
35
Part IV
Payments of Income Tax to the USVI
36
36
Income tax withheld by the USVI .
.
.
.
.
.
.
.
.
.
.
.
.
37
2017 estimated tax payments and amount applied from 2016 return
.
37
38
Amount paid with Form 4868 (extension request) .
.
.
.
.
.
.
.
38
39
Add lines 36 through 38. These are your total payments to the USVI .
.
.
.
.
.
.
.
.
39
40
Enter the smaller of line 35 or line 39. Include this amount in the total on Form 1040, line 74. On
the dotted line next to line 74, enter “Form 8689” and show this amount .
.
.
.
.
.
.
.
.
40
41
Overpayment to the USVI. If line 39 is more than line 35, subtract line 35 from line 39
.
.
.
.
41
42
Amount of line 41 you want refunded to you .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
42
43
Amount of line 41 you want applied to your 2018 estimated tax
.
.
43
44
Amount you owe to the USVI. If line 39 is less than line 35, subtract line 39 from line 35 .
.
.
.
44
45
Enter the amount from line 44 that you will pay when you file your income tax return. Include this amount in
the total of Form 1040, line 74. On the dotted line next to line 74, enter “Form 8689” and show this amount
45
8689
For Paperwork Reduction Act Notice, see the Form 1040 instructions.
Form
(2017)
Cat. No. 64603D
8689
Allocation of Individual Income Tax
OMB No. 1545-0074
2017
Form
to the U.S. Virgin Islands
Attach to Form 1040.
Department of the Treasury
Attachment
85
Go to www.irs.gov/Form8689 for the latest information.
Internal Revenue Service
Sequence No.
Name(s) shown on Form 1040
Your social security number
Part I
Income From the U.S. Virgin Islands (USVI)
1
Wages, salaries, tips, etc.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1
2
Taxable interest .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
3
3
Ordinary dividends .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4
4
Taxable refunds, credits, or offsets of local USVI income taxes .
.
.
.
.
.
.
.
.
.
.
.
5
Alimony received
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
6
Business income or (loss)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
7
Capital gain or (loss) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
8
8
Other gains or (losses)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9
9
IRA distributions (taxable amount) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
Pensions and annuities (taxable amount)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
11
Rental real estate, royalties, partnerships, S corporations, trusts, etc. .
.
.
.
.
.
.
.
.
.
11
12
Farm income or (loss) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
12
13
Unemployment compensation .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13
14
14
Social security benefits (taxable amount)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
15
Other income. List type and amount
16
Add lines 1 through 15. This is your total USVI income
.
.
.
.
.
.
.
.
.
.
.
.
.
16
Part II
Adjusted Gross Income From the USVI
17
Educator expenses
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17
18
Certain business expenses of reservists, performing artists, and
18
fee-basis government officials .
.
.
.
.
.
.
.
.
.
.
.
.
.
19
Health savings account deduction
.
.
.
.
.
.
.
.
.
.
.
.
19
20
Moving expenses .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
21
Deductible part of self-employment tax .
.
.
.
.
.
.
.
.
.
.
21
22
Self-employed SEP, SIMPLE, and qualified plans .
.
.
.
.
.
.
.
22
23
23
Self-employed health insurance deduction .
.
.
.
.
.
.
.
.
.
24
Penalty on early withdrawal of savings
.
.
.
.
.
.
.
.
.
.
.
24
25
IRA deduction
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
25
26
Student loan interest deduction
.
.
.
.
.
.
.
.
.
.
.
.
.
26
27
Tuition and fees deduction .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
27
28
28
Add lines 17 through 27 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
29
Subtract line 28 from line 16. This is your USVI adjusted gross income .
.
.
.
.
.
.
.
29
Part III
Allocation of Tax to the USVI
30
Enter amount from Form 1040, line 63
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
30
31
Enter the total of the amounts from Form 1040, lines 57, 58, 60a, 66a, 67, 68, 73 (boxes c and d). Include any uncollected social
security and Medicare or tier 1 RRTA tax, tax on excess golden parachute payments, or excise tax on insider stock compensation
31
reported on line 62. Also include any amount from Form 5329, Parts III, IV, V, VI, VII, VIII, or IX reported on Form 1040, line 59
.
32
Subtract line 31 from line 30
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
32
33
Enter amount from Form 1040, line 38
.
.
.
.
.
.
.
.
.
.
.
33
×
34
Divide line 29 above by line 33. Enter the result as a decimal (rounded to at least 3 places). Do not enter more than 1.000
34
.
35
Multiply line 32 by line 34. This is your tax allocated to the USVI
.
.
.
.
.
.
.
.
.
.
.
35
Part IV
Payments of Income Tax to the USVI
36
36
Income tax withheld by the USVI .
.
.
.
.
.
.
.
.
.
.
.
.
37
2017 estimated tax payments and amount applied from 2016 return
.
37
38
Amount paid with Form 4868 (extension request) .
.
.
.
.
.
.
.
38
39
Add lines 36 through 38. These are your total payments to the USVI .
.
.
.
.
.
.
.
.
39
40
Enter the smaller of line 35 or line 39. Include this amount in the total on Form 1040, line 74. On
the dotted line next to line 74, enter “Form 8689” and show this amount .
.
.
.
.
.
.
.
.
40
41
Overpayment to the USVI. If line 39 is more than line 35, subtract line 35 from line 39
.
.
.
.
41
42
Amount of line 41 you want refunded to you .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
42
43
Amount of line 41 you want applied to your 2018 estimated tax
.
.
43
44
Amount you owe to the USVI. If line 39 is less than line 35, subtract line 39 from line 35 .
.
.
.
44
45
Enter the amount from line 44 that you will pay when you file your income tax return. Include this amount in
the total of Form 1040, line 74. On the dotted line next to line 74, enter “Form 8689” and show this amount
45
8689
For Paperwork Reduction Act Notice, see the Form 1040 instructions.
Form
(2017)
Cat. No. 64603D
[This page left blank intentionally]
3
Form 8689 (2017)
Page
Section references are to the Internal Revenue Code
or tips earned while you were in the USVI. However,
unless otherwise noted.
certain income earned while temporarily performing
services in the USVI will not be considered USVI source
Future Developments
income. For details, see De minimis exception, later.
For the latest information about developments related to
Military spouses. If you are the civilian spouse of a
Form 8689 and its instructions, such as legislation
member of the U.S. Armed Forces, work in the USVI, and
enacted after they were published, go to
retain a residence or domicile in one of the 50 states, the
www.irs.gov/Form8689.
District of Columbia, or another U.S. territory, under the
Instructions
Military Spouses Residency Relief Act (MSRRA) your
wages, salaries, tips, and self-employment income will
Purpose of form. Use Form 8689 to figure the amount of
not be considered income from the USVI. Under MSRRA,
U.S. tax allocable to the U.S. Virgin Islands (USVI).
the military spouse must be in the USVI solely to be with
Who must file. If you were a U.S. citizen or resident alien
his/her servicemember spouse who is serving in
(other than a bona fide resident of the USVI) and had
compliance with military orders. For details on MSRRA,
income from sources in the USVI or income effectively
see Pub. 570.
connected with the conduct of a trade or business in the
• The source of interest income is generally where the
USVI, you may owe tax to the USVI. Your USVI tax
payer is located. For example, interest from a certificate
liability is a percentage of your U.S. tax liability.
of deposit issued by a USVI bank or a USVI branch of a
Do not use this form if you were a bona fide
U.S. bank is USVI source income.
!
resident of the USVI during the entire tax year,
• Generally, dividends are sourced where the paying
or were considered a bona fide resident of the
corporation is created or organized.
CAUTION
USVI for the entire tax year under the special
• Taxable refunds, credits, or offsets of local USVI income
rules for the year of a move (see chapter 1 of Pub. 570,
taxes include only nonmirror code income taxes.
Tax Guide for Individuals With Income From U.S.
• Alimony received from a person who is a bona fide
Possessions).
resident of the USVI is USVI source income.
Joint returns. If you file jointly and only one spouse is
• Except as provided in regulations, income earned after
a bona fide resident of the USVI for the entire tax year,
December 31, 2004, that is from sources within the
the resident status for both spouses and subsequent tax
United States or effectively connected with the conduct
treatment is determined by the spouse with the higher
of a trade or business in the United States is not income
adjusted gross income (AGI) (disregarding community
from the USVI.
property laws). File Form 8689 only if the spouse with the
• The source of gains, profits, or income from the sale or
higher AGI is not a bona fide resident of the USVI for the
disposition of real property (and any interest in real
entire tax year.
property) is generally where the real property is located.
Where to file. You must file identical tax returns with the
Personal property. The source of income from the sale
United States and the USVI. If you are not enclosing a
of nondepreciable personal property is generally the seller’s
check or money order, file your original Form 1040
residence. For example, if you are a bona fide resident of
(including Form 8689) with the Department of the
Treasury, Internal Revenue Service Center, Austin, TX
the USVI, gain from the sale or disposition of personal
property is generally from sources within the USVI. Income
73301-0215 USA.
from the sale of inventory is generally sourced where the
If you are including a check or money order, file your
title to the property passes. See section 865 for details.
original return with the Internal Revenue Service, P.O. Box
De minimis exception. This is an exception to the
1303, Charlotte, NC 28201-1303 USA.
general rule for determining the source of income earned
File a signed copy of your Form 1040 (with all
in the USVI. Generally, income from the USVI does not
attachments, forms, and schedules, including Form 8689)
include compensation for services performed in the USVI
with the Virgin Islands Bureau of Internal Revenue, 6115
if during 2017 you:
Estate Smith Bay, St. Thomas, VI 00802. They will accept
• Were a U.S. citizen or resident;
a signed copy of your U.S. return and process it as an
original return.
• Were not a bona fide resident of the USVI;
Additional information. Pub. 570 has more information
• Were not employed by or under contract with an
and an example of how to complete Form 8689. To get
individual, partnership, or corporation that is engaged in a
Pub. 570, see How To Get Tax Help in the Instructions for
trade or business in the USVI;
Form 1040.
• Temporarily performed services in the USVI for 90 days
or less; and
Part I—Income From the U.S. Virgin Islands
(USVI)
• Earned $3,000 or less from such services.
Part II—Adjusted Gross Income From the
Source of income. The rules for determining the source
of income are explained in sections 861 through 865 and
USVI
937, Regulations section 1.937-2, and chapter 2 of Pub.
Lines 21 through 23. If you had USVI source self-
570. Some general rules are:
employment income, figure the amount to enter on each
• The source of wages, salaries, or tips is generally where
line by (1) dividing your USVI source self-employment
the services are performed. If you worked both in and
income by your total (worldwide) self-employment
outside the USVI, include on line 1 only wages, salaries,
income and (2) multiplying the total amount of each
deduction that applies to you by the result in (1).
4
Form 8689 (2017)
Page
Line 24. Enter the amount of penalty on early withdrawals
Line 45. Enter the amount you owe to the USVI that you
from savings accounts in USVI banks or USVI branches
will pay when you file your income tax return.
of U.S. banks. The Form 1099-INT or Form 1099-OID you
Credit for U.S. tax paid to the USVI. You can take a
received will show the amount of any penalty you were
credit on your U.S. return for the U.S. tax allocated to the
charged.
USVI only if you actually paid the tax to the USVI. To take
Line 25. Enter the total of your and your spouse’s IRA
the credit, you must complete Form 8689 and attach it to
deductions attributable to USVI compensation or earned
your Form 1040. Add line 40 and line 45 of Form 8689
income. Figure the amount to report on line 25 by (1)
and include the amount in the total on Form 1040, line 74.
dividing your USVI compensation or earned income by
On the dotted line next to line 74, enter “Form 8689” and
your total (worldwide) compensation or earned income
the amount paid.
and (2) multiplying the amount of your IRA deduction by
Penalty for Failure To Furnish Information
the result in (1). Figure the amount of your spouse’s IRA
If, in tax year 2001 or later, you became or ceased to be a
deduction the same way.
bona fide resident of a U.S. possession, you may be
Line 28. Include in the total on line 28 the amount of any
required to file Form 8898, Statement for Individuals Who
other deductions included on Form 1040, line 36, that are
Begin or End Bona Fide Residence in a U.S. Possession.
attributable to your USVI income. On the dotted line next
If you fail to provide the required information, you may
to line 28, enter the amount of each deduction
have to pay a $1,000 penalty for each failure unless you
attributable to your USVI income and identify it as you did
can show the failure was due to reasonable cause and
on Form 1040, line 36. If you or your spouse had an
not willful neglect. This penalty is in addition to any
Archer MSA deduction on Form 1040, line 36, figure the
criminal penalty provided by law. For details, see the
amount to report on line 28 the same way you would an
Instructions for Form 8898.
IRA deduction (see Line 25, above).
Part IV—Payments of Income Tax to the
USVI
Amounts overpaid to the United States generally will not
be applied to the amount you owe to the USVI. Similarly,
amounts overpaid to the USVI will not be applied to the
amount you owe to the United States.

Download IRS Form 8689 2017 Allocation of Individual Income Tax to the U.S. Virgin Islands

1283 times
Rate
4.8(4.8 / 5) 64 votes
ADVERTISEMENT
Page of 4