Moving to U.S. Virgin Islands: residency checklist

Your domicile is the place you treat as your permanent home, so the new home has to be the one you really live in. States compare your homes: California's FTB lists the location of your principal residence as a factor, New York's Tax Department reviews the homes you keep and how you use each, and Utah's code compares the living accommodations you have in each state.

Keep as proof: Signed lease or deed, move-in date, and a first utility bill at the new address

File IRS Form 8822 for your home mailing address (the form's instructions say a change generally takes 4 to 6 weeks). USPS says mailers such as banks and government agencies do not forward sensitive mail like driver's licenses, voter registration, credit cards, bank statements or insurance papers, so change your address with each sender directly. Utah's code counts the address you list on mail and tax returns.

Keep as proof: Copy of Form 8822 with proof of mailing, plus address-change confirmations from your bank and insurers

California's FTB lists the state where you are registered to vote as a residency factor, and New York's guidelines look at where you are registered and whether you vote there, including in primary and local elections. The federal National Mail Voter Registration Form can report a change of address and asks for the address where you were registered before; follow your own state's instructions on it, because each state runs registration differently.

Keep as proof: Voter registration confirmation (card or online confirmation page)

Applies if you have children

States look at where your family lives. California's FTB lists the location of your spouse/RDP and children, New York's Tax Department says where minor children attend school can be one of the most important factors, and Utah's code counts where a dependent is enrolled in school.

Keep as proof: School enrollment confirmation and the first report card or school record showing the new address

California's FTB lists where your banks are and where your doctors, dentists, accountants and attorneys are. Not every state weighs these: Minnesota's statute says the Commissioner and courts may not consider where your attorney, CPA or financial adviser is or where you open accounts, and New York's guidelines call the mere location of bank accounts a non-factor. Treat this as supporting evidence, not proof on its own.

Keep as proof: New-patient and account-opening confirmations showing the new address

New York's guidelines list legal documents that name a place as your domicile or primary residence, such as a will, as a factor (a secondary one), and Utah's code counts asserting residency in a document you file with a court or government body. Ask your attorney to review your will, trust and powers of attorney so they match your move.

Keep as proof: Signed copies of the updated documents

iReside logs where you are every day, so you have auditable proof of the day you moved and of the days you spend in your old state. Day counts matter: Minnesota's statute requires adequate records of days spent outside the state, and New York's guidelines treat a diary or calendar as support for where you spent your time. Keep the record for as many years as your old state can still check.

Keep as proof: iReside day report for the year

To be taxed as a the U.S. Virgin Islands resident you must be a bona fide resident: pass the presence test (at least 183 days in the U.S. Virgin Islands in the tax year, or 549 days over 3 years with at least 60 in each year, or another limb such as 90 days or fewer in the US), have no tax home outside the U.S. Virgin Islands, and have no closer connection to the US or a foreign country. In the year you move, you can still qualify if you were not a bona fide resident in the 3 prior years, have no tax home or closer connection elsewhere during the last 183 days of the year, and are a bona fide resident in each of the 3 following years.

Applies if you keep your old home

A permanent home in the US is a 'significant connection' under Treas. Reg. 1.937-1(c)(5) and a closer-connection factor. Pub. 570's Puerto Rico example finds a closer connection to the US where the mover kept a jointly owned family home in California. Decide before you move whether to keep a US home available for your use, and ask a tax advisor how it affects your facts.

Keep as proof: Sale closing statement, or lease and rent records if the home is rented out long term

Applies if you drive

Bring a valid, unexpired license from your US state or jurisdiction, which the BMV keeps; the BMV verifies it with the issuing state. You also need a driving record from that state dated within 30 days of your application, one primary identity document, Social Security verification showing the full number, and two proofs of residential address from different sources. The BMV page says late fees can apply but gives no start date and no deadline for converting. Tell the BMV about any later change of address within ten days (two proofs of address are required).

Keep as proof: Copy of the new USVI license and BMV receipt

Applies if you own a vehicle

For a vehicle never registered in the USVI, the BMV asks for the original title, proof of liability insurance, the Highway User's Tax (Road Tax) form, your ID and shipping documents. Any lien must be satisfied or the lender must provide a letter. A special permit lets the unregistered vehicle travel to the BMV, and all vehicles except private ones 10 years old or newer need an annual inspection.

Keep as proof: USVI registration and title, insurance card, lender letter if applicable

Applies if you are a registered voter

Where you vote is a closer-connection factor in Pub. 570, and being registered to vote in a US political subdivision counts as a 'significant connection' to the US under Treas. Reg. 1.937-1(c)(5). Cancel your old state registration and register with the U.S. Virgin Islands's election office if you are eligible.

Keep as proof: Confirmation of the cancelled state registration and the new the U.S. Virgin Islands registration

Deadline: April 15 after the tax year

A bona fide resident of the USVI files with the Bureau of Internal Revenue (6115 Estate Smith Bay, St. Thomas) and generally pays income tax only to the USVI, reporting worldwide income. If you have non-USVI-source income, attach BIR Form 1040INFO. The USVI uses the same tax laws and rates as the US. For an extension, bona fide USVI residents file a paper Form 4868 with the BIR.

Keep as proof: Copy of the filed return with BIR receipt, and Form 1040INFO if filed

Deadline: By the due date for filing Form 1040

If you are a US citizen or resident alien who is not a bona fide USVI resident for the whole tax year (and not treated as one under the year-of-move rules) but have USVI-source income, file your original Form 1040 with the IRS and a signed copy with all attachments, including Form 8689, with the BIR. Form 8689 allocates your US tax to the USVI. Do not use it if you were a bona fide resident for the entire year or are treated as one under the year-of-move rules.

Keep as proof: Copy of the return and Form 8689 as filed with both offices

Applies if you have a high income

Deadline: By the due date, including extensions, of your Form 1040 for that tax year

If you take the position that you became a bona fide resident of the USVI after a year you filed a US return as a citizen or resident alien (not as a territory resident), and your worldwide gross income that year is more than $75,000, file Form 8898 with the IRS. Mail it separately; do not attach it to your return. Not filing, or filing incomplete or wrong information, can bring a $1,000 penalty unless you show reasonable cause.

Keep as proof: Copy of Form 8898 and proof of mailing

The 183-day, 549-day and 90-day tests all turn on days present. Any day you are physically present in the U.S. Virgin Islands at any time counts as a day there, and special rules decide which days in the US count.

A home you keep is the first thing a state looks at. New York's guidelines weigh whether you made real efforts to sell it (for example by hiring a real estate firm) and moved your belongings out, and California's FTB lists the location of your principal residence. If you keep the old home, the old state may compare it with your new one, and keep a day log.

Keep as proof: Listing agreement, closing statement, lease termination or new rental lease for the old home

New York's guidelines treat the location of items you hold near and dear (family heirlooms, art, collections, photo albums, pets) as a primary factor, and note that a mover's bill of lading or an insurance statement can document the move. Items left behind in the old state can suggest you have not given it up.

Keep as proof: Mover's bill of lading or inventory, and an insurance policy showing the new address

File a permanent change of address at the Official USPS Change of Address site (identity verification required) or at a Post Office. USPS says to allow at least 7 to 10 business days after approval for it to start, so file before moving day.

Keep as proof: USPS confirmation email

Applies if you are a registered voter

California's FTB lists where you are registered to vote as a residency factor, New York's guidelines look at where you are registered and how you voted, and Utah's code treats voting in the state, without being registered in another state, as establishing domicile there. Register in your new state (the federal form asks for your previous registration address), then stop voting from the old one and ask your old election office how to cancel.

Keep as proof: Confirmation that the old registration was cancelled or moved

California's FTB lists where your social ties are, such as your place of worship, professional associations and clubs, and Utah's code counts membership in a church, club or similar group in the state. Resign, transfer or switch to non-resident status where you can, and join local groups in your new state.

Keep as proof: Resignation or transfer letters and new membership confirmations

Keep iReside running through the move year and after: it logs where you are every day, so you have auditable proof of when you left and of any days you spend back in the old state. Minnesota's statute requires adequate records of days spent outside the state, and New York's guidelines treat a diary or calendar as support for where you spent your time. Keep the record for the years your old state can still check.

Keep as proof: iReside day report for the year

In the year you leave you can still be treated as a bona fide resident of the USVI if you were a bona fide resident in each of the 3 prior years, had no tax home or closer connection outside the USVI during the first 183 days of the year, and are not a bona fide resident of the USVI in any of the 3 following tax years. The presence test must also be met for that year.

Applies if you own a vehicle

Deadline: Within 24 hours of the transfer

The USVI BMV says sellers must notify it of a transfer within 24 hours. The transfer cancellation takes effect 48 hours after the Director receives notice, and after that the vehicle may be driven only if the new owner has a new registration and plates. Liens must be cleared before a transfer, with a letter from the lender confirming the vehicle may be transferred.

Keep as proof: Transfer notice, lender letter and sale paperwork

Deadline: April 15 after the tax year

If you meet the year-of-move rules, you are treated as a bona fide USVI resident for the move year and file with the BIR. If not, you file your Form 1040 with the IRS and a signed copy with the BIR, using Form 8689 for USVI-source income. Pub. 570 gives the filing addresses and notes the BIR honors an extension request timely filed with the IRS for non-residents.

Keep as proof: Copies of the returns and Form 8689 if used

Applies if you have a high income

Deadline: By the due date, including extensions, of your Form 1040 for that tax year

If you take the position that you ceased to be a bona fide resident of the USVI after a year you filed a return as a territory resident (with the IRS, the territory, or both), and your worldwide gross income that year is more than $75,000, file Form 8898 with the IRS. Mail it separately; do not attach it to your return. The penalty for not filing or filing wrong is $1,000 unless you show reasonable cause.

Keep as proof: Copy of Form 8898 and proof of mailing

Your days in the USVI before you leave, and your days in the US after, decide which tests you meet in the move year. Any day you are physically present in the USVI at any time counts as a day there. Keep the log until the return for the move year (and the 3 following years) is settled.