J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

36.9 Virgin Islands, Samoa, Guam, and Northern Marianas

The Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands have their own independent tax departments. Therefore, contact the particular tax authority for the proper treatment of your income and obtain a copy of IRS Publication 570, Tax Guide for Individuals With Income From U.S. Possessions, which provides phone, mail, and internet contact information.

- - - - - - - - - -

Caution

Form 8898 To Report Change of Residence

You generally must file Form 8898 for a tax year in which you have worldwide income of over $75,000 and in which you become or cease to be a bona fide resident of a U.S. possession. A $1,000 penalty may be imposed for failure to file a required Form 8898.

- - - - - - - - - -

Possession exclusion.

A possession exclusion applies to bona fide residents of American Samoa for the entire year. On Form 4563, such residents may exclude for U.S. tax purposes their income from sources in American Samoa and income effectively connected with a business in American Samoa. The exclusion applies to amounts earned for services as an employee of the American Samoan government or its agencies but does not apply to pay as an employee, whether civilian or military, of the U.S. government or its agencies.