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Official form guide
Form 8689: Allocation of Individual Income Tax to the U.S. Virgin Islands
IRS Form 8689 is the Allocation of Individual Income Tax to the U.S. Virgin Islands. It calculates the portion of your U.S. tax that is payable to the USVI for U.S. citizens or resident aliens (excluding bona fide USVI residents) who have USVI source income. A $1,000 penalty may apply for failure to provide required information.
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IRS Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands
IRS Form 8689 is the Allocation of Individual Income Tax to the U.S. Virgin Islands. It calculates the portion of your U.S. tax that is payable to the USVI for U.S. citizens or resident aliens (excluding bona fide USVI residents) who have USVI source income. A $1,000 penalty may apply for failure to provide required information.
Risk Radar
Scan points- 1Failing to attach Form 8689 to your 1040/1040‑SR can trigger a $1,000 penalty per omission.
- 2Using Form 8689 when you are a bona fide USVI resident for the entire tax year.
- 3Omitting USVI source income on Part I lines 1‑6.
- 4Not rounding the decimal on line 35 to at least three places or exceeding 1.000.
- 5Failing to multiply line 33 by line 35 to compute line 36 (tax allocated to USVI).
Plain English
Form 8689 tells the IRS how much of your federal tax you must allocate to the U.S. Virgin Islands. You fill it out when you earn money from USVI sources or a USVI trade or business. The form is attached to your regular 1040 or 1040‑SR return and sent to the Virgin Islands tax bureau.
Submission Date
- Filing date: 2025-11-03 22:10:19
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when you are a U.S. citizen or resident alien (not a bona fide USVI resident) with USVI source income or income effectively connected with a USVI trade or business.
- Do not use it when you were a bona fide resident of the USVI for the entire tax year (or under the special move rules).
- Check Form 1040‑X instead when you are filing an amended return.
Form selector
Use this form or another form?
Amending a previously filed U.S. return that includes Form 8689
Amended returns must reflect changes to USVI tax allocation
✓ Confirm the original Form 8689 was attached to the original return
Filing a joint return where one spouse is a bona fide USVI resident
Resident status is determined by the spouse with higher AGI; Form 8689 only filed if that spouse is not a bona fide resident
✓ Verify AGI of both spouses and residency status
Reporting USVI tax payments on your U.S. return
Line 41 of Form 8689 is added to the “Other refundable credits” line on Schedule 3
✓ Ensure line 41 amount is entered on Schedule 3
Deadline or filing window
The source does not specify a filing deadline. No information on extensions is provided.
Checklist
What you need before filling it out
Wages, salaries, tips, etc. (Line 1)
Amount of USVI source wages · Part I of Form 8689
Taxable interest (Line 2)
Interest income amount from USVI sources · Part I of Form 8689
Total payments to USVI (Line 40)
Sum of estimated tax payments and extension payments · Part I lines 37‑39 summed
Amount you owe to the USVI (Line 45)
Difference between line 36 and line 40 when line 40 is less · Part I line 45 calculation
Penalty for missing information (Page 4)
Confirmation that required information was provided · Instructions on page 4
Before you submit
- 1Verify name and Social Security number match those on Form 1040 or 1040‑SR.
- 2Enter all USVI source income on Part I lines 1‑6.
- 3Add lines 37‑39 to calculate line 40 (total payments to the USVI).
- 4Enter the smaller of line 36 or line 40 on line 41.
- 5Transfer the line 41 amount to the “Other refundable credits” line on Schedule 3 (Form 1040).
- 6Select refund (line 43) or apply to 2026 estimated tax (line 44) as appropriate.
- 7Sign the attached Form 1040 and Form 8689.
- 8Mail the signed package to the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
How to file this form
- 1Attach Form 8689 to your completed Form 1040 or Form 1040‑SR.
- 2Complete Part I with all USVI source income and payment amounts.
- 3Calculate lines 40‑45 and place the line 41 amount on Schedule 3, Other refundable credits.
- 4Sign the combined return and all attached schedules.
- 5Mail the signed return to the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
- 6Retain a copy of the signed return for your records.
Known limitations
- 1Do not use Form 8689 if you were a bona fide resident of the U.S. Virgin Islands for the entire tax year. (Form p.3)
- 2Do not use Form 8689 if you were considered a bona fide resident under the special rules for the year of a move. (Form p.3)
- 3Do not file Form 8689 for a joint return unless the spouse with the higher adjusted gross income is not a bona fide resident of the U.S. Virgin Islands. (Form p.3)
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
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Fillable formOpen in Editor->The form is the 2025 revision (displayed as 20 25) and the PDF directs users to www.irs.gov/Form8689 for the latest information.
What changed or needs a fresh check
- Edition date — confirm the form shows revision 2025 (displayed as 20 25).
- Fee — not stated in the official source.
- Mailing address — confirm the USVI filing address is 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
- Signature — not stated in the official source.
Quick Facts
Downloads
After you file
- 1Keep a signed copy of your federal return with Form 8689 and all attachments for your records.
- 2Send the signed copy to the Virgin Islands Bureau of Internal Revenue at 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802. (Form p.3)
- 3If you need to correct the filing, submit Form 1040‑X either electronically or by mail to both the IRS and the Virgin Islands Bureau of Internal Revenue. (Form p.3)
- 4After payment, claim the credit on Schedule 3 of Form 1040 only if the USVI tax was actually paid. (Form p.4)
- 5If you became or ceased to be a bona fide resident during the year, file Form 8898 to avoid the $1,000 penalty per missing information. (Form p.4)
Sources
- SRCForm p.3 — Do not use this form if you were a bona fide resident of the USVI during the entire tax year.
- SRCForm p.3 — Do not use this form if you were considered a bona fide resident under special rules for the year of a move.
- SRCForm p.3 — For joint returns, file Form 8689 only if the spouse with the higher AGI is not a bona fide resident of the USVI.
- SRCForm p.3 — File a signed copy of your tax return with the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
- SRCForm p.3 — Amendments can be filed using Form 1040‑X, either e‑filed or mailed to the IRS and the USVI Bureau.
- SRCForm p.4 — Include the amount of USVI income tax withheld (box 2 of Form W‑2VI) on line 37 of Form 8689, not on federal withheld lines.
- SRCForm p.4 — You can claim a credit on Schedule 3 of Form 1040 only after actually paying the USVI tax.
- SRCForm p.4 — Failure to provide required information may result in a $1,000 penalty per failure unless reasonable cause is shown.
Common confusion points
Do I need to file Form 8689 if I lived in the USVI all year?
I might think any USVI connection requires filing, but the form is not for bona fide residents.
→ Verify you were not a bona fide resident for the entire tax year per instructions.
My spouse is a USVI resident; do we both file Form 8689?
Joint return rules depend on the spouse with higher AGI, causing confusion.
→ Check which spouse has the higher AGI and whether that spouse is a bona fide resident.
Where should I send Form 8689 after completing it?
The filing address differs from the federal address.
→ Send the signed copy to the Virgin Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
Can I claim the USVI tax credit on my federal return before paying the USVI tax?
Credit is allowed only after payment, leading to misunderstanding.
→ Confirm you have paid the USVI tax before entering the credit on Schedule 3.
Do I include USVI tax withheld on my federal Form 1040?
Tax withheld from USVI wages appears on Form 8689, not on federal lines.
→ Enter the amount on line 37 of Form 8689 and omit it from federal withheld lines.
What penalty applies if I forget to attach required information?
The penalty for missing info may be unexpected.
→ Review whether Form 8898 is required; missing it may trigger a $1,000 penalty per failure.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 8898 – required when you become or cease to be a bona fide resident; missing it can trigger a $1,000 penalty. (Form p.4)
Questions about IRS Form 8689
What is IRS Form 8689 used for?
Form 8689 tells the IRS how much of your federal tax you must allocate to the U.S. Virgin Islands. You fill it out when you earn money from USVI sources or a USVI trade or business. The form is attached to your regular 1040 or 1040‑SR return and sent to the Virgin Islands tax bureau.
Who must file IRS Form 8689?
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 a USVI trade or business, you must file IRS Form 8689.
What information does IRS Form 8689 require?
Part I reports USVI source income on lines 1‑6; Part III allocates tax using lines 31‑36; Part IV reports USVI tax payments on line 37. The form also requires your name and Social Security number as shown on Form 1040 or 1040‑SR.
Where do I file IRS Form 8689?
File a signed copy of your tax return (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. You must also file an identical return with the United States.
How do I complete IRS Form 8689?
First, attach Form 8689 to your Form 1040 or 1040‑SR. Then complete Part I by entering USVI wages, interest, dividends, refunds, alimony, and business income. Next, calculate the allocation in Part III using lines 31‑36, rounding the decimal on line 35 to at least three places. Finally, report any USVI tax withheld on line 37 in Part IV, sign the return, and mail it to the Virgin Islands Bureau of Internal Revenue.
What happens if IRS Form 8689 is filed incorrectly?
If you fail to provide required information, you may be assessed a $1,000 penalty for each failure, in addition to any criminal penalties.
Do I need to file Form 8689 if I lived in the USVI all year?
I might think any USVI connection requires filing, but the form is not for bona fide residents. Verify you were not a bona fide resident for the entire tax year per instructions.
My spouse is a USVI resident; do we both file Form 8689?
Joint return rules depend on the spouse with higher AGI, causing confusion. Check which spouse has the higher AGI and whether that spouse is a bona fide resident.
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