U.S. Virgin Islands Income Taxes, Forms

U.S. Virgin Islands tax return
U.S. Virgin Islands

The U.S. Virgin Islands have their own tax system based on the tax rates and laws of the United States tax system. Since you cannot prepare and e-file or file a Virgin Islands Tax Return on eFile.com or anywhere online, you can contact the Virgin Islands Bureau of Internal Revenue for information on how to do this. However, if you need to complete a Federal Income Tax Return, you can do this on eFile.com, but you need to print it, sign it, and mail it to the IRS since the IRS does not accept e-filed returns with addresses in the U.S. Virgin Islands Islands and other U.S. Territory/Protectorates. Find IRS mailing addresses for your Federal Tax return here. See information on filing state tax returns if you need to file one or more state returns. Read on if you want to know basic U.S Virgin Islands tax information.

Filing Virgin Islands and U.S. Tax Returns

If you are a United States nonresident alien that is not a bona fide resident of the U.S. Virgin Islands for the entire tax year, then you must file a tax return with the U.S. Virgin Islands listing the income you earned in the U.S. Virgin Islands. You must also file a tax return with the United States government, reporting all income from the United States on Form 1040NR (Learn how to file Form 1040NR). However, if you are a nonresident alien of the United States but a bona fide U.S. Virgin Islands resident, you must file a U.S. Virgin Islands tax return, reporting worldwide income but excluding U.S. income. In addition, you must file a U.S. tax return, namely Form 1040, reporting all worldwide income except U.S. Virgin Islands income. Your tax return will be treated as a document from a nonresident alien, meaning you won't be allowed to claim a dependent deduction unless the dependent is a U.S. citizen or national. If you need to add or change any information to your U.S. Virgin Islands return after the U.S. Virgin Islands Islands accepts it, find out how to prepare, and file a U.S. Territory Tax Amendment.

If you have self-employment income, you may have to report your information on Form 1040-SS - you can e-file this form on eFile.com.

If you have income from sources located in the U.S. Virgin Islands or income effectively associated with the conduct of a business or a trade in the U.S. Virgin Islands, then you must file a U.S. Virgin Islands return with the same information as the U.S. tax return. Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands, can be used to determine the amount of tax owed to the U.S. Virgin Islands. Click on this link and complete, and sign the form online before you share or download it.

If you are a U.S. citizen or resident alien that is not a bona fide resident of the U.S. Virgin Islands or a resident alien, in addition to filing a U.S. Virgin Islands tax return that reports all your worldwide income except your U.S. income, you must prepare and e-file a U.S. tax return reporting all your worldwide income except your U.S. Virgin Islands income.

For more information, Publication 80 - Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands

You should report all income from any source in the world. However, if you are a U.S. Virgin Islands bona fide resident during the entire year, you are generally not required to file an IRS Federal Tax Return if your only income is from the U.S. Virgin Islands. Find out if you need to file a U.S. tax return. On your U.S. tax return, you cannot claim any tax credits or tax deductions that are directly or indirectly linked to the excluded income. You can prepare your U.S. Tax Return online by clicking the button below: 

Start United States Federal Tax Return

Once you complete and e-file your tax return, check the status of your United States Federal Tax Refund here if you are expecting a refund. To change or add any information to a Federal Tax Return already accepted by the IRS, complete and file an Amended U.S. Tax Return.


See other U.S. States, Territories, and Protectorates.