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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 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 Individuals Living or Working in U.S. Territories/Possessions webpage:

An individual who has income from American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam, Puerto Rico or the U.S. Virgin Islands will usually have to file a tax return with the tax department of one of these territories. In some situations, you may have to determine if you are a resident or a nonresident of the territory. For forms and advice on filing a territory tax return, contact that territory's tax department. The addresses and telephone numbers for the tax departments of the U.S. territories may be found in Publication 570, Tax Guide for Individuals With Income From U.S. Possessions. Additional information about the U.S. territories can be found at State and Local Government on the Net.

To enter information on Form 8689 in the TaxAct program online:

  1. Sign in to your TaxAct Online return, click Tools down the left side to expand, then click Forms Assistant.
  2. Click to expand the FEDERAL Forms folder, then click to expand the Forms and Schedules folder.
  3. Scroll down and click Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands.
  4. Click Add to create a new form or Form to review a form already created, then enter the applicable information directly on the form.
  5. Click Save & Close at the top when you are done to save the changes and exit out of the entry window.

To enter information on Form 8689 using the desktop program:

  1. Start your TaxAct Desktop return, then click Forms in the top left corner.
  2. Click to expand the Federal folder, then click to expand the Forms and Schedules folder.
  3. Scroll down and click Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands to expand, then double-click Add Copy (or double-click the form that appears).
  4. Enter the applicable information directly on the form.

Once you have entered the applicable information on the Form 8689, you will see the text "Form 8689" print next to Form 1040 U.S. Individual Income Tax Return, Line 7a and the total of Form 8689, Line 30 will be included in that total.

If you decide to e-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" on page 3.

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

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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