What 🐈Is IRS Publication 570: Tax Guide For Individuals With Income From U.S. Possessions?

The term IRS Publication 570: Tax Guide For Individuals With Income From U.S. Possessions refers to a document published by the Internal Revenue Service (IRS) that provides information for tax filers with investments in U.S.-guided territories, including Puerto Rico and the Northern Mariana Islands, and possessions. Topics covered in the publication include bona fide residence, how to determine the source of income, as well as examples.

Understanding IRS Publicati🔯on 570: Tax Guide F𒊎or Individuals With Income From U.S. Possessions

The IRS releases a series of publications that are available to individual and corporate 澳洲幸运5官方开奖结果体彩网:taxpayers. These publications act as guides, which provide information and clarification for filers who may have trouble or questions about whether they qualify for certain 澳洲幸运5官方开奖结果体彩网:tax credits and 澳洲幸运5官方开奖结果体彩网:deductions, how to claim certain income, and new tax programs announcꦯed during a specific ♛tax year.

IRS Publication 570: Tax Guide For Individuals With Income From U.S. Possessions outlines the requirements for being considered a resident of a U.S. possession and the rules for determining the source of income. Bonafide residents of a territory or possession may be required to fill out a U.S. 澳洲幸运5官方开奖结果体彩网:tax return, a possession tax return, or both. United States possessions include:

• Puerto Rico
• American Samoa
• The Commonwealth of the Northern Mariana Islands
• Guam
• the U.S. Virgin Islands

How IRS Publication 570 Works

The publication is necessary for those who want to understand how to treat the income they receive from U.S. possessions for the purpose of their own personal tax returns. Tax filers who want to receive 澳洲幸运5官方开奖结果体彩网:tax benefits afforded to residents of a U.S. possession must prove that they are bona fide residents of that possession for the entire tax year. This can be accomplished by not having a home outside of the possession, by having more of a connection to the possession than to the United States or a foreign country, or by meeting the presence test.

Aside from the 澳洲幸运5官方开奖结果体彩网:physical presence test and the tax home of the filer, the publication also outlines how to determine the source of income. The guide has a table outlining which factors determine the source of various types of income, including salaries, pensions, rents, 澳洲幸运5官方开奖结果体彩网:dividends, interest, and proceeds from the sale of property, 澳洲幸运5官方开奖结果体彩网:business inventory, and natural resources.

Special Considerations

Taxpayers or tax return preparers can access Publication 570 along with accompanying information and legislative updates through the IRS website. Filers must have a Social Security number (SSN) or, for non-residents or 澳洲幸运5官方开奖结果体彩网:resident aliens, an updated 澳洲幸运5官方开奖结果体彩网:individual taxpayer identification♛ number (ITIN). Filers who have not used their ITIN in the past three consecutive years need to file for a new number, as they expire if not used on a federal tax return during this period of time.

The IRS also notes that there may be additional taxes due, such as Medicare, self-employment, and 澳洲幸运5官方开奖结果体彩网:net investment income tax. For instance, residents of a U.S. territory who are self-employed and earn an income through self-employment are generally required to pay 澳洲幸运5官方开奖结果体彩网:self-employment tax ​​​​​​​to the United States.