Form 8689: Allocation Of Individual Income Tax To The U.S. Virgin Islands

A tax form distributed by the Internal Revenue Service (IRS) for use by U.S. citizens and resident aliens who earned income from sources in the U.S. Virgin Islands. Form 8689 determines what portion of income tax should be allocated to the U.S. Virgin Islands.

Taxpayers have to file two identical Form 1040 documents: one with the U.S. Virgin Islands and one with the United States. The original, along with Form 8689, is sent to the federal government.

Form 8689 does not apply to bona fide residents of the U.S. Virgin Islands. If a couple filing jointly has one spouse listed as a bona fide resident, the resident status will be determined by the spouse with the higher adjusted gross income.

Taxpayers who become or cease to be a bona fide resident of the U.S. Virgin Islands have to file Form 8898, which lets the federal government know the taxpayer's residential status. Failing to do so may result in a fine.