2015 form 8689-2025

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USVI Income Taxes: Residents of the USVI, instead of filing returns and paying taxes to the IRS, file returns and pay income taxes directly to the USVI Bureau of Internal Revenue. The taxes are at the same rates and use the same forms and rules as for federal income taxes.
A U.S. citizen or resident alien (other than a bona fide resident of the U.S. Virgin Islands (USVI)) with income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI uses this form to figure the amount of U.S. tax allocable to the USVI.
USVI Tax Incentives The Economic Development Commission up to 90% reduction in corporate and personal income tax; 100% exemption on other taxes, including business property and gross receipt taxes; U.S. currency, courts, and flag protection; rental space at below-market rates in sponsored industrial parks.
If you decide to e-file the Federal return, Form 8689 will be sent with that submission. If you decide to paper file the return, the return will need to be sent to the IRS address as outlined in the Form 8689 instructions under the section titled Where to File on page 3.
TurboTax does not support the Form 8689, however you can enter the credit that you compute on the Form 8689 (line 40) in TurboTax Deluxe. You wont have to upgrade. Enter in the Other Credits section under Deductions and Credits.
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If you are a US resident with income allocable to the Virgin Islands, file Form 8689 with your regular 1040 tax return.
For the latest information about developments related to Form 8689 and its instructions, such as legislation enacted after they were published, go to .irs.gov/Form8689. Purpose of form. Use Form 8689 to figure the amount of U.S. tax allocable to the U.S. Virgin Islands (USVI).

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