Publication 570: Tax Guide For Individuals With Income From US Possessions
Publication 570, also known as the "Tax Guide for Individuals with Income from U.S. Possessions," is a comprehensive guide by the Internal Revenue Service (IRS) specifically for individuals with income earned in specific U.S. territories and possessions.
What is Publication 570?
Publication 570, also known as the "Tax Guide for Individuals with Income from U.S. Possessions," is an official Internal Revenue Service (IRS) resource that provides guidance to individuals who earned income in specific U.S. territories.
Who should use this guide?
This guide is valuable for:
A. U.S. citizens and residents: If you earned income in American Samoa, Puerto Rico, Guam, the Northern Mariana Islands, or the U.S. Virgin Islands, you should consult this guide to understand how to report it on your tax return.
B. Individuals residing in U.S. possessions: Even if you are not subject to U.S. income tax due to bona fide residency in a possession, you may still have self-employment tax obligations. This guide clarifies these requirements.
Key information covered in Publication 570:
A. Determining your tax filing status: The guide explains how your residency status in a U.S. possession affects your filing requirements.
B. Identifying income sources: It outlines the different types of income (wages, interest, dividends, etc.) earned in U.S. possessions and how to report them on your tax return.
C. Special tax provisions: The guide details specific tax benefits and deductions available to individuals with income from U.S. possessions, such as the Possessions Tax Credit and the Section 936 benefit (applicable to certain Puerto Rico residents).
D. Self-employment tax: The guide clarifies self-employment tax obligations for bona fide residents of U.S. possessions.
E. Filing instructions: Publication 570 provides specific instructions on how to report income from U.S. possessions on various IRS forms.