Form 8689: Allocation Of Individual Income Tax To The U.S. Virgin Islands
 |
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 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. |
Related Definitions
Articles Of Interest
-
Inaccurate Tax Return, Now What?
If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place. -
Simple Last-Minute Tax Tips
A little preparation and organization can take the stress out of last-minute tax filing. -
10 Steps To Tax Preparation
Follow these simple steps to get you ready for April 15. -
3 Common Tax Questions Answered
We clarify some rules that often puzzle taxpayers. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
Possible Effects Of The Online Retail Tax
The U.S. Senate has passed a bill that will impose a sales tax on online retailers. Discover how the Marketplace Fairness Act could affect your bottom line. -
How To Get The Most Out Of Hiring An Accountant
When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Tips To Make Next Year’s Taxes Less Stressful
You might be ready to put the stress of tax preparation behind you until next season, but ignoring your personal tax situation for 11 months of the year is what got you into this mess. Find out ... -
How To Safeguard Your Tax Returns From Identity Theft
Identity thieves love tax season. In 2012, there were 13 million victims of identity theft. As easy as it is for thieves to steal your information, there are also simple measures you can take ...
Free Annual Reports
