Form 8689: Allocation Of Individual Income Tax To The U.S. Virgin Islands

Dictionary Says

Definition of 'Form 8689: Allocation Of Individual Income Tax To The U.S. Virgin Islands'


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. Form 8689 determines what portion of income tax should be allocated to the U.S. Virgin Islands.

Taxpayers have to file two identical Form 1040 documents: one with the U.S. Virgin Islands and one with the United States. The original, along with Form 8689, is sent to the federal government.

Investopedia Says

Investopedia explains 'Form 8689: Allocation Of Individual Income Tax To The U.S. Virgin Islands'


Form 8689 does not apply to bona fide residents of the U.S. Virgin Islands. If a couple filing jointly has one spouse listed as a bona fide resident, the resident status will be determined by the spouse with the higher adjusted gross income.

Taxpayers who become or cease to be a bona fide resident of the U.S. Virgin Islands have to file Form 8898, which lets the federal government know the taxpayer's residential status. Failing to do so may result in a fine.

comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center