Search Help Topics:

TaxAct® does not support the returns for the U.S. Virgin Islands; however, if you were a U.S. Citizen or Resident Alien and not a Bona Fide resident of the U.S. Virgin Islands, you may only need to file Federal Form 8689 Allocation of Individual Income Tax to the U.S. Virgin Islands and send a copy of your U.S. tax return (including all attachments and Form 8689) to the Virgin Islands Bureau of Internal Revenue (and also to the IRS).

Per the IRS webpage Individuals Living or Working in U.S. Possessions:

American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico have their own independent tax departments. If you have income from one of these possessions, you may have to file a U.S. tax return only, a possession tax return only, or both returns. This generally depends on whether you are considered a resident of one of the possessions. In some cases, you may have to file a U.S. return, but be able to exclude income earned in a possession from U.S. tax. Filing requirements for specific U.S. possessions are explained in IRS Publication 570.

To enter information on Form 8689 in the TaxAct program:

Online:

  1. Sign in to your TaxAct Online return
  2. Click Tools to expand the category, then click Forms Assistant
  3. Expand the Federal Forms view, then expand the Forms and Schedules view
  4. Scroll down and click on Quick Entry Available next to Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands
  5. Click Add to create a new form or Form to review a form already created
  6. Enter the applicable information directly on the form
  7. Click Close Form in the top right corner when you are done to save the changes and exit out of the entry window

Desktop:

  1. Start your TaxAct Desktop return
  2. Click on the Forms button in the top left corner
  3. Expand the Federal view and then expand the Forms and Schedules view
  4. Scroll down and click the '+' next to Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands, then double-click Add Copy (or double-click on the form that appears)
  5. Enter the applicable information directly on the form
Once you have entered the applicable information on the Form 8689, you will see "Form 8689" print next to Form 1040, Line 72 and the total of Form 8689, Lines 40 and 44 will be included in that total.

If you decide to electronically 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.

In both instances, e-filing or paper filing with the IRS, you will need to file a return with the USVI that is identical to the return filed with the IRS. This identical return should be sent to the address within the Form 8689 instructions:

Virgin Islands Bureau of Internal Revenue
6115 Estate Smith Bay
St. Thomas, VI 00802

Additional Information:

IRS Publication 570 Tax Guide for Individuals With Income From U.S. Possessions
Federal Form 8689 Allocation of Individual Income Tax to the U.S. Virgin Islands and its instructions


Was this helpful to you?