Form 4563: Exclusion Of Income For Bona Fide Residents Of American Samoa

Definition of 'Form 4563: Exclusion Of Income For Bona Fide Residents Of American Samoa'


A tax form distributed by the Internal Revenue Service (IRS) and used to determine the amount of income earned in American Samoa that can be excluded from a taxpayer's gross income. In order to qualify for this exemption, the taxpayer must be either a resident of American Samoa or conduct business there.

Investopedia explains 'Form 4563: Exclusion Of Income For Bona Fide Residents Of American Samoa'


When determining what income can be excluded from taxpayers' claims, the IRS focuses on the source of the income. If a taxpayer earns income from outside and inside American Samoa, all wages, salaries or tips from outside are not included in Form 4563. To be considered for exclusion, income gained from interest has to be from a bank located in American Samoa. Dividend income is considered if it is from a company created or organized in American Samoa.



comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center