2023 Form 8689 - Allocation of Individual Income Tax to the US Virgin Island

The 2023 Form 8689 is a tax form used by U.S. citizens and resident aliens who earned income from sources in the U.S. Virgin Islands (USVI) but are not bona fide residents. The form is used to allocate a portion of the individual's income tax liability to the USVI. The form is relatively straightforward and requires the taxpayer to input various income items that are sourced from the USVI, such as wages, salaries, dividends, self-employment income, and other income. The taxpayer must then allocate a portion of their deductions, adjustments, and tax liability to the USVI based on the percentage of their total income that is sourced from the USVI. The form is filed with both the IRS and the USVI Bureau of Internal Revenue. Bona fide residents of the USVI are not required to file Form 8689.

For the current tax year version of Form 8689, please go here.