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Old 07-09-2019, 11:27 AM
 
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Does anyone know if a pension from another US State(or private company) is considered taxable income if you retire to one of the islands? Meaning the pension was not earned while working in the islands.

Thanks!
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Old 07-09-2019, 02:44 PM
 
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It absolutely is taxable. USVI works under a mirror system of taxation. They have equivalent rates of taxes as the federal US system. IOW, the income tax burden of for a resident of the USVI is the same as someone who files a federal US income tax return living in a state with no income tax. The difference is that you pay it to the USVI Bureau of internal revenue, not the US IRS.

If you are considered a bona fide resident of the USVI, instead of filing a return with the US IRS, you'll file a return with the USVI "IRS" and end up paying income taxes as you would if you lived in a state with no state income tax, as described above. That's for bona fide residents. There's other variation for non-bona fide residents et al.
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Old 07-10-2019, 12:53 PM
 
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So the fed rate is the same but they don't have a local income tax, right? Just making sure I understand. Thanks!
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Old 07-21-2019, 10:26 AM
 
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Quote:
Originally Posted by Mad.Mom View Post
So the fed rate is the same but they don't have a local income tax, right? Just making sure I understand. Thanks!
Yes, The local tax rate is comparable to the federal rate. Not exactly the same but close.

If you have a federal job, then you need to file the federal return in addition to the local one. Be careful and best to contact a local CPA who knows the local laws and how they relate.
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Old 10-05-2019, 03:01 PM
 
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Yeah. A lot of misinformation. You file with the IRB (internal revenue bureau) and pay any INCOME taxes due at precisely the same rate as if you were paying federal INCOME taxes. Social Security and other FICA taxes are paid Stateside, since that's a Federal program (social security and medicare). If you're self employed, you file your SE taxes Stateside, and the straight Income Taxes with the IRB. Understand that SE taxes are simply social security withholding or SE, Medicare, etc. A lot of people move there and simply keep paying Federal taxes and never get involved with the IRB if their job or income permit it. They just claim domicile somewhere Stateside. I've seen Federal employees do it, although it is probably not a great idea. Likewise if you mistakenly pay your SE taxes (FICA) to the IRB instead of Stateside, you can kiss them goodbye. The only way you can get those back is to use them against subsequent years filings. No refundo.
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