Is St. John U.S. virgin islands considered a state? How do I file a return for a territory?

[user548013019660]

I worked for a very short time in the US Virgin Islands. How do I file my taxes for that?

[PhyllisG · Accepted solution]

St. John Virgin Islands is not considered a State, but is politically part of the United States Virgin Islands (USVI). If you live and work in the Virgin Islands then you are not required to file a State tax return.

However, U.S. citizens and permanent residents who are not resident there and have  income from the USVI, must pay the same amount of tax as they would if all their income were from U.S. sources. In other words, you will report the income on a Form 1040. 

The tax is then apportioned between the United States and the USVI so an Internal Revenue Service Form 8689 is required. TurboTax does not support the Form 8689; therefore, it must be prepared outside of TurboTax and attached to a paper filed return.