the Virgin Islands

[Oh Baby!]

Can anyone tell me if individuals living in the Virgin Islands pay taxes like those in the states or if there are any benefits for those living in the VI? I know they have to file a regular 1040.

thanks!

[jainen]

>>they have to file a regular 1040<<

For bona fide residents, the U.S. Virgin Islands has its own separate tax system. See Pub 570 at http://www.irs.gov/pub/irs-pdf/p570.pdf.

[Oh Baby!]

Does anyone know where i can locate form 1040-VI, which does not seem to be on the IRS web page?

[JRS]

Website for their version of the IRS.

http://www.viirb.com/Contacts.html

[jainen]

>>does not seem to be on the IRS web page?<<

... because that is not an IRS form. As I said, the Virgin Islands has a separate system. The pub I pointed you to explains "Where to get Forms and Information" on page 14. There is an address, a phone number, and a web site.

[imjulier]

I had one of these a couple years ago. If they are not a resident of the VI, file 1040 with form 8689 attached with the IRS. Send the same to the VI. If a resident, only file with VI. At least thats what I found out a few years ago unless anything has changed. See the instructions to form 8689. And remember, everything is on Island Time down there so its not easy!

Julie

[Oh Baby!]

reviving an old topic regarding a US Citizen, living and working in the US VI and all income earned from a VI Source.....

Client is a bona fide VI resident and US born, US Citizen. Earns Schedule C income, has SE taxes dues and qualifies for the EIC and Child Tax Credit. If i understand this all correctly I am prepring a regular 1040 and attaching it to the VI 1040INFo and sending that all to the VI tax office. 

Is that correct? 

Will the taxpayer be paying the SE taxes?

Will the taxpayer qualify and / or receive the EIC and / or Child tax Credit?

[SaraEA]

There is also a British Virgin Islands, which is treated as a foreign country.  Make sure you have the right VI.