Can I prepare return for a resident of the US Virgin Islands? When I setup the client, US Virgin Islands is not an option for the staten. I'm not sure what I should do?

[itonewbie]

USVI is not a state, it is a US territory.  Depending on whether your client is a bona fide resident of the USVI and source of income, your client may pay tax to either the IRS or USVI Bureau of Internal Revenue or both.

If you are not familiar with the rules, you can refer to Pub 570 for detailed explanations.

You may also refer to this recent discussion about USVI but it may apply to your client's situation: https://proconnect.intuit.com/community/proseries-discussions/discussion/income-earned-in-st-thomas/...

[itonewbie]

If your client needs to file the return with USVI BIR, you'll need to use the tax forms on the BIR's website: http://bir.vi.gov/

[renee5]

Thank you. I was hoping I could use the software to help prepare the returns of a Virgin Islander particularly since their tax system is a mirror system of the US Federal Tax System and I have used TurboTax to prepare VI returns. 

[itonewbie]

You must have mistaken.  First, AFAIK, TurboTax does not support 1040VI.  Second, you can't use TurboTax to prepare returns as a paid preparer.  Third, it is possible to prepare a regular 1040 which includes VI liabilities for taxpayers who are not bona fide residents of USVI.

[renee5]

I have actually used TurboTax as an individual preparer to prepare my personal returns when I was a resident of the VI many moons ago. I have also used TurboTax to help my cousin with his returns in the past (he is a resident of the VI). So that's where my question came from.

Just a little disappointed I will not be able to use PS to prepare VI returns as a paid preparer. I will likely have to use a different program to assist with this client's returns (and any other clients if I get anymore).

Thanks again! 

[itonewbie · Accepted solution]

NP, @renee5.  Sounds like PS would have, at that time, the capability to prepare 1040 VI then because it runs on the same engine as TurboTax.  Now, it seems like both have lost that capability.

Not aware of any professional tax product out there that covers USVI though.  If you find any, would be great if you could share the info as it could be helpful to others.  Thanks!