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A U.S. citizen or resident alien (other than a bona fide resident of the U.S. Virgin Islands ( 2414)) who has income from sources within the U.S. Virgin Islands or effectively connected with a trade or business in the U.S. Virgin Islands is required to file an income tax return with both the United States and the U.S.
Form 8689 is a tax form distributed by the Internal Revenue Service (IRS) for use by U.S. citizens and resident aliens who earned income from sources in the U.S. Virgin Islands (USVI) but are not bona fide residents. The U.S. Virgin Islands are considered an unincorporated territory of the United States.
File your 2023 federal tax return online, for free, directly with the IRS Direct File pilot if you: Live in one of the 12 pilot states. Have simple tax filing needs and report certain types of income, credits and deductions.
There are three main ways to file taxes: Fill out IRS Form 1040 by hand and mail it (not recommended), File taxes online using tax software, or. Hire a human tax preparer to do the work of tax filing.
File a signed copy of your tax return (with all attachments, forms, and schedules, including Form 8689) with the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802. They will accept a signed copy of your U.S. return and process it as an original return.

People also ask

US Virgin Islands does not use a state withholding form because there is no personal income tax in US Virgin Islands.
With respect to an individual to whom section 932(a) applies for a taxable year, for purposes of taxes imposed by Chapter 1 of the Internal Revenue Code (Code), the United States generally will be treated, in a geographical and governmental sense, as including the Virgin Islands.
US Virgin Islands is not a tax haven or offshore jurisdiction, but USVI companies (or corporations) could be established as USVI Exempt Companies with partial or full exemption from local and US federal income taxes.

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