Unfortunately no, you will not be able to use TurboTax to file both your US and USVI income tax return.
TurboTax does not support this type of tax filing.
Here is some information that may help you with your US and USVI filings.
When preparing your 1040, ywould
report the W-2VI just like a W-2 except do NOT report Box 2 amount as federal
withholdings (you will need to do some additional allocations related to
your VI income).
Since
the amount listed on your W-2VI in box 2 is VI income tax withheld instead of US federal income
tax withholdings, do not report this information when inputting your W-2VI.
The taxes paid to the U.S. Virgin Islands are not deductible on either a
Federal or U.S. Virgin Islands return. Instead, these taxes paid to the U.S.
Virgin Islands are a refundable credit on the Federal or U.S. Virgin Islands
return. Also, do not put the VI income tax withheld shown in Box 2 as Box 17
state income tax withholdings.
Since you do not qualify as a “bona fide
resident” of the U.S. Virgin Islands, you will need to do the following in
order to file your Form 1040.
You will need to split your tax due between the United
States and the U.S. Virgin Islands. Get a copy of Form 8689 Allocation
of Individual Income Tax to the U.S. Virgin Islands from the IRS website. http://www.irs.gov/pub/irs-pdf/f8689.pdf.
This form is not supported by TurboTax.
Fill out Parts I and
II with the amounts from the Virgin Islands only that you identified when
collecting your information. Do the calculation in Part III. This is the
portion of your total tax that is paid to the U.S. Virgin Islands. Finish Form
8689 Part IV using amounts paid to the U.S. Virgin Islands. Ignore line 40. You
now need two “identical” tax returns.
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. Add line 40 and line 45 of Form 8689
and include the amount in the total on Form 1040, line 74. On the dotted line
next to line 74, enter "Form 8689" and the amount paid.
On the Form 1040
that will go to the IRS, put the amount from Form 8689 line 35 on Form 1040
line 53 c “8689”. Calculate your
total payments to the IRS, Federal income tax withheld from Forms W-2, etc.,
and fill out Form 1040 lines 61 through 76 using Federal amounts. Place Form
8689 in the return in attachment sequence order (85). Sign and date Form 1040
on page 2 and mail to the IRS Service Center Austin, TX 73301-0215.
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.
On the Form 1040 that will be filed with the Virgin
Islands Bureau of Internal Revenue, put Form 8689 as the first page of
the return (on top of Form 1040 page 1). Ignore Form 8689 instructions to put
amounts from lines 40 (which should be blank) and 44 on Form 1040 line 71. (We
are giving you the official V.I. Bureau of Internal Revenue instructions.) Sign
and date the return.
File a signed copy
of your Form 1040 (with all attachments, forms, and schedules, including Form
8689) with the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith
Bay, St. Thomas, VI 00802. They will accept a signed copy of your U.S. return
and process it as an original return.
