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Federal Free Printable 2020 Form 8689 for 2021 Federal Allocation of Individual Income Tax to the U.S. Virgin Islands

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Allocation of Individual Income Tax to the U.S. Virgin Islands
2020 Form 8689

Form 8689 Department of the Treasury Internal Revenue Service Allocation of Individual Income Tax to the U.S. Virgin Islands OMB No. 1545-0074 2020 Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form8689 for the latest information. ▶ ▶ Attachment Sequence No. 869 Your social security number Name(s) shown on Form 1040 or 1040-SR Part I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Part II 17 18 19 20 21 22 23 24 25 26 27 28 29 30 36 42 43 44 45 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 17 18 19 20 21 22 23 24 25 26 27 28 . . . . . . . . . . . . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Adjusted Gross Income From the USVI ▶ 29 30 Allocation of Tax to the USVI Enter amount from Form 1040 or 1040-SR, line 24 . . . . . . . . . . . . . . . . . Enter total of certain amounts from Form 1040 or 1040-SR. See instructions on page 4 for amount to enter Subtract line 32 from line 31 . . . . . . . . . . . . . . . . . . . . . . . . Enter amount from Form 1040 or 1040-SR, line 11 . . . . . . . . . 34 Divide line 30 above by line 34. Enter the result as a decimal (rounded to at least 3 places). Do not enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . Multiply line 33 by line 35. This is your tax allocated to the USVI . . . . . . . . . . . . Part IV 37 38 39 40 41 . . . . . . . . . . . . . . Educator expenses . . . . . . . . . . . . . . . . . . . Certain business expenses of reservists, performing artists, and fee-basis government officials Health savings account deduction . . . . . . . . . . . . . . Moving expenses for members of the armed forces . . . . . . . . . Deductible part of self-employment tax . . . . . . . . . . . . . Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . Self-employed health insurance deduction . . . . . . . . . . . . Penalty on early withdrawal of savings . . . . . . . . . . . . . IRA deduction . . . . . . . . . . . . . . . . . . . . . Student loan interest deduction . . . . . . . . . . . . . . . Tuition and fees deduction. See instructions . . . . . . . . . . . Charitable contributions. See instructions . . . . . . . . . . . . Add lines 17 through 28 . . . . . . . . . . . . . . . . . . . Subtract line 29 from line 16. This is your USVI adjusted gross income . . . Part III 31 32 33 34 35 Income From the U.S. Virgin Islands (USVI) Wages, salaries, tips, etc. . . . . . . . . . . . . . . Taxable interest . . . . . . . . . . . . . . . . . . Ordinary dividends . . . . . . . . . . . . . . . . . Taxable refunds, credits, or offsets of local USVI income taxes . . Alimony received . . . . . . . . . . . . . . . . . Business income or (loss) . . . . . . . . . . . . . . Capital gain or (loss) . . . . . . . . . . . . . . . . Other gains or (losses) . . . . . . . . . . . . . . . IRA distributions (taxable amount) . . . . . . . . . . . . Pensions and annuities (taxable amount) . . . . . . . . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Farm income or (loss) . . . . . . . . . . . . . . . . Unemployment compensation . . . . . . . . . . . . . Social security benefits (taxable amount) . . . . . . . . . Other income. List type and amount ▶ Add lines 1 through 15. This is your total USVI income . . . . 31 32 33 35 36 . Payments of Income Tax to the USVI Income tax withheld by the USVI . . . . . . . . . . . . . . . 37 2020 estimated tax payments and amount applied from 2019 return . . . 38 Amount paid with Form 4868 (extension request) . . . . . . . . . . 39 Add lines 37 through 39. These are your total payments to the USVI . . . . . . . . . . ▶ Enter the smaller of line 36 or line 40. Include this amount in the total on Form 1040 or 1040-SR, line 33. On the dotted line next to line 33, enter “Form 8689” and show this amount . . . . . . . Overpayment to the USVI. If line 40 is more than line 36, subtract line 36 from line 40 . . . . . Amount of line 42 you want refunded to you . . . . . . . . . . . . . . . . . . ▶ Amount of line 42 you want applied to your 2021 estimated tax . . . . 44 Amount you owe to the USVI. If line 40 is less than line 36, subtract line 40 from line 36 . . . . . Enter the amount from line 45 that you will pay when you file your income tax return. Include this amount in the total of Form 1040 or 1040-SR, line 33. On the dotted line next to line 33, enter “Form 8689” and show this amount . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 64603D 40 41 42 43 45 46 Form 8689 (2020) [This page left blank intentionally] Form 8689 (2020) Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8689 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form8689. What’s New For tax years beginning in 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act allows a partial deduction for charitable contributions. See the instructions for line 28, Charitable contributions, later. Instructions Purpose of form. Use Form 8689 to figure the amount of U.S. tax allocable to the U.S. Virgin Islands (USVI). Who must file. If you were a U.S. citizen or resident alien (other than a bona fide resident of the USVI) and had income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, you may owe tax to the USVI. Your USVI tax liability is a percentage of your U.S. tax liability. Do not use this form if you were a bona fide resident of the USVI during the entire tax year, or were considered a bona fide resident of the CAUTION USVI for the entire tax year under the special rules for the year of a move (see chapter 1 of Pub. 570, Tax Guide for Individuals With Income From U.S. Possessions). Joint returns. If you file jointly and only one spouse is a bona fide resident of the USVI for the entire tax year, the resident status for both spouses and subsequent tax treatment is determined by the spouse with the higher adjusted gross income (AGI) (disregarding community property laws). File Form 8689 only if the spouse with the higher AGI is not a bona fide resident of the USVI for the entire tax year. Where to file. You must file identical tax returns with the United States and the USVI. If you are not enclosing a check or money order, file your original Form 1040 or 1040-SR (including Form 8689) with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215 USA. If you are including a check or money order, file your original return with the Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303 USA. File a signed copy of your Form 1040 or 1040-SR (with all attachments, forms, and schedules, including Form 8689) with the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802. They will accept a signed copy of your U.S. return and process it as an original return. Amended returns. Send your Form 1040-X to the IRS at the address in the Instructions for Form 1040-X. Send your Form 1040-X to the USVI at the address for the Virgin Islands Bureau of Internal Revenue under Where to file, earlier. ! ▲ Page 3 Additional information. Pub. 570 has more information and an example of how to complete Form 8689. To get Pub. 570, see How To Get Tax Help in the Instructions for Forms 1040 and 1040-SR. Part I—Income From the U.S. Virgin Islands (USVI) Source of income. The rules for determining the source of income are explained in sections 861 through 865 and 937, Regulations section 1.937-2, and chapter 2 of Pub. 570. Some general rules are: • The source of wages, salaries, or tips is generally where the services are performed. If you worked both in and outside the USVI, include on line 1 only wages, salaries, or tips earned while you were in the USVI. However, certain income earned while temporarily performing services in the USVI will not be considered USVI source income. For details, see De minimis exception, later. Active duty U.S. Armed Forces. If you are a bona fide resident of the USVI and are stationed outside of the USVI, your military compensation will be sourced in the USVI under the Servicemembers Civil Relief Act (SCRA). If you are not a bona fide resident of the USVI but are stationed in the USVI, however, your military compensation will not be sourced there. For further details, see Pub. 570. Military spouses. If you are the civilian spouse of a member of the U.S. Armed Forces, work in the USVI, and retain a residence or domicile in one of the 50 states, the District of Columbia, or another U.S. territory, under the Military Spouses Residency Relief Act (MSRRA) your wages, salaries, tips, and self-employment income will not be considered income from the USVI. Under MSRRA, the military spouse must be in the USVI solely to be with his/ her servicemember spouse who is serving in compliance with military orders. For details on MSRRA, see Pub. 570. • The source of interest income is generally where the payer is located. For example, interest from a certificate of deposit issued by a USVI bank or a USVI branch of a U.S. bank is USVI source income. • Generally, dividends are sourced where the paying corporation is created or organized. • Taxable refunds, credits, or offsets of local USVI income taxes include only nonmirror code income taxes. • Alimony received from a person who is a bona fide resident of the USVI is USVI source income. • Except as provided in regulations, income that is from sources within the United States or effectively connected with the conduct of a trade or business in the United States is not income from the USVI. • The source of gains, profits, or income from the sale or disposition of real property (and any interest in real property) is generally where the real property is located. Personal property. The source of income from the sale of nondepreciable personal property is generally the seller’s residence. For example, if you are a bona fide resident of the USVI, gain from the sale or disposition of personal property is generally from sources within the USVI. Income from the sale of inventory is generally sourced where the title to the property passes. See section 865 for details. Page 4 Form 8689 (2020) De minimis exception. This is an exception to the general rule for determining the source of income earned in the USVI. Generally, income from the USVI does not include compensation for services performed in the USVI if during 2020 you: • Were a U.S. citizen or resident; • Were not a bona fide resident of the USVI; • Were not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in the USVI; • Temporarily performed services in the USVI for 90 days or less; and • Earned $3,000 or less from such services. Part II—Adjusted Gross Income From the USVI Lines 21 through 23. If you had USVI source selfemployment income, figure the amount to enter on each line by (1) dividing your USVI source self-employment income by your total (worldwide) self-employment income, and (2) multiplying the total amount of each deduction that applies to you by the result in (1). Line 24. Enter the amount of penalty on early withdrawals from savings accounts in USVI banks or USVI branches of U.S. banks. The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged. Line 25. Enter the total of your and your spouse’s IRA deductions attributable to USVI compensation or earned income. Figure the amount to report on line 25 by (1) dividing your USVI compensation or earned income by your total (worldwide) compensation or earned income, and (2) multiplying the amount of your IRA deduction by the result in (1). Figure the amount of your spouse’s IRA deduction the same way. Line 27. Tuition and fees deduction. Enter the total of your tuition and fees deduction from Schedule 1 (Form 1040), line 21, attributable to your USVI income. Figure the amount to report on line 27 by (1) dividing your USVI income by your total (worldwide) income, and (2) multiplying the amount of your tuition and fees deduction by the result in (1). Note: The tuition and fees deduction that had expired on December 31, 2017, has been extended for tax years 2018, 2019, and 2020. If you are now eligible to take the deduction for a prior year, you can file an amended tax return with the IRS and the Virgin Islands Bureau of Internal Revenue using Form 1040-X. For more information, go to www.irs.gov/Form1040X. Also, see Amended returns, earlier. Line 28. Charitable contributions. Enter the total of your charitable contributions from Form 1040 or 1040-SR, line 10b, attributable to your USVI income. Figure the amount to report on line 28 by (1) dividing your USVI income by your total (worldwide) income, and (2) multiplying the amount of your charitable contributions by the result in (1). Line 29. Include in the total on line 29 the amount of any other deductions included on Schedule 1 (Form 1040), line 22, that are attributable to your USVI income. On the dotted line next to line 29, enter the amount of each deduction attributable to your USVI income and identify it as you did on Schedule 1 (Form 1040), line 22. If you or your spouse had an Archer MSA deduction on Schedule 1 (Form 1040), line 22, figure the amount to report on line 29 the same way you would an IRA deduction (see Line 25 above). Line 32. Enter the total of the amounts from: • Form 1040 or 1040-SR, lines 27, 28, and 29; • Schedule 2 (Form 1040), lines 4, 5, and 7a; • Any uncollected social security and Medicare or tier 1 RRTA tax, tax on excess golden parachute payments, or excise tax on insider stock compensation reported on Schedule 2 (Form 1040), line 8; • Any amount from Form 5329, Parts III, IV, V, VI, VII, VIII, or IX reported on Schedule 2 (Form 1040), line 6; and • Schedule 3 (Form 1040), lines 12c and 12d. Part IV—Payments of Income Tax to the USVI Amounts overpaid to the United States generally will not be applied to the amount you owe to the USVI. Similarly, amounts overpaid to the USVI will not be applied to the amount you owe to the United States. Line 46. Enter the amount you owe to the USVI that you will pay when you file your income tax return. Credit for U.S. tax paid to the USVI. You can take a credit on your U.S. return for the U.S. tax allocated to the USVI only if you actually paid the tax to the USVI. To take the credit, you must complete Form 8689 and attach it to your Form 1040 or 1040-SR. Add line 41 and line 46 of Form 8689 and include the amount in the total on Form 1040 or 1040-SR, line 33. On the dotted line next to line 33, enter “Form 8689” and the amount paid. Penalty for Failure To Furnish Information If you became or ceased to be a bona fide resident of a U.S. possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession. If you fail to provide the required information, you may have to pay a $1,000 penalty for each failure unless you can show the failure was due to reasonable cause and not willful neglect. This penalty is in addition to any criminal penalty provided by law. For details, see the Instructions for Form 8898.
Extracted from PDF file 2020-federal-form-8689.pdf, last modified October 2020

More about the Federal Form 8689 Other TY 2020

We last updated the Allocation of Individual Income Tax to the U.S. Virgin Islands in January 2021, so this is the latest version of Form 8689, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 8689 directly from TaxFormFinder. You can print other Federal tax forms here.


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Form Sources:

The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8689 from the Internal Revenue Service in January 2021.

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Historical Past-Year Versions of Federal Form 8689

We have a total of ten past-year versions of Form 8689 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Form 8689

2020 Form 8689

2019 Form 8689

2019 Form 8689

2018 Form 8689

2018 Form 8689

2017 Form 8689

2016 Form 8689

2016 Form 8689

2016 Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands 2015 Form 8689

2015 Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands 2014 Form 8689

2014 Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands 2013 Form 8689

2013 Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands 2012 Form 8689

2012 Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands 2011 Form 8689

2011 Form 8689


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