Filing Requirements for Individuals in U.S. Possessions An individual who has income from Guam, the CNMI, American Samoa,the Virgin Islands, or Puerto Rico will probably have to file a taxreturn with one of the possessions' tax departments. It is possiblethat you may have to file two annual tax returns: one with thepossession's tax department and the other with the U.S. InternalRevenue Service. You should ask for forms and advice about the filing of possessiontax returns from that possession's tax department and not the InternalRevenue Service. In some situations you may have to determine if youare a resident or a nonresident of a certain possession. Contact thetax department of that possession for advice about this point. The following discussions cover the general rules for filingreturns in Guam, the CNMI, American Samoa, the Virgin Islands, andPuerto Rico. Caution: A U.S. person who becomes a resident of American Samoa, Guam, orthe CNMI may be subject to U.S. tax on U.S. source income, includinggain from sales of certain U.S. assets, during the 10-year periodbeginning when the person becomes a resident. The U.S. person will besubject to U.S. tax on any gain from the disposition of U.S. property(including appreciated stock issued by a U.S. corporation) during thisperiod. Guam Guam has its own tax system based on the same tax laws and taxrates that apply in the United States. Envelope: Requests for advice about Guam residency and tax matters should beaddressed to: Department of Revenue and Taxation Government of Guam P.O. Box 23607 GMF, GU 96921 Phone: Telephone number (671) 472-7471 Fax number (671) 472-2643 If you are a U.S. citizen with income from sources in Guam and theUnited States, you must file your income tax return as explained belowwith either Guam or the United States, but not both. You are notliable for any income tax to the jurisdiction with which you do nothave to file. Envelope: If you are a resident of Guam on the last day of yourtax year, you should file your return with the: Department of Revenue and Taxation Government of Guam P.O. Box 23607 GMF, GU 96921 Include income from worldwide sources on theGuam return. Include any balance of tax due with your tax return. Example.Gary Barker was a resident of Guam during the entire year. Hereceived wages of $20,000 paid by a private employer and dividends of$4,000 from U.S. corporations that carry on business mainly in theUnited States. He must file a 1999 income tax return with the Government of Guam.He reports his total income of $24,000 on the Guam return. Envelope: If you are a resident of the United States on the lastday of your tax year, you should file your return with the: Internal Revenue Service Philadelphia, PA 19255-0215 Include income from worldwide sources on the U.S. return. Includeany balance of tax due with your tax return. If you are neither a resident of Guam nor a resident of theUnited Statesat the end of your tax year, you should file with Guam if you are acitizen of Guam but not otherwise a citizen of the United States (bornor naturalized in Guam). If you are a U.S. citizen or resident but nototherwise a citizen or resident of Guam, you should file with theUnited States. Example.William Berry, a U.S. citizen, was employed by a private company inGuam from June 1 through December 31, 1999. He received a salary of$20,000 during that period for his work in Guam, $4,000 in dividendsfrom U.S. corporations that carry on business mainly in the UnitedStates, and $1,000 in interest from deposits in U.S. banks. Williamwas advised by the Guam Department of Revenue and Taxation that he wasnot a resident of Guam. He must file a U.S. tax return. On his U.S.tax return, he reports the $4,000 of dividends, the $1,000 ofinterest, and the $20,000 Guam salary in addition to any income he hadin 1999 before June 1. Joint return.If you file a joint return, you should file it (and pay the tax)with the jurisdiction where the spouse who has the greater adjustedgross income would have to file (if you were filing separately). Ifthe spouse with the greater adjusted gross income is a resident ofGuam at the end of the tax year, file the joint return with Guam. Ifthe spouse with the greater adjusted gross income is a resident of theUnited States at the end of the tax year, file the joint return withthe United States. For this purpose, income is determined withoutregard to community property laws. Example.Bill White, a U.S. citizen, was a resident of the United States,and his wife, a citizen of Guam, was a resident of Guam at the end ofthe year. Bill earned $25,000 as an engineer in the United States. Hiswife earned $15,000 as a teacher in Guam. Mr. and Mrs. White will filea joint return. Because Bill has the greater adjusted gross income,they must file their return with the United States and report theentire $40,000 on that return. U.S. military employees.If you are a member of the U.S. Armed Forces stationed on Guam, youare not considered a resident of Guam and you must file your returnwith the United States. However, if you are a member of the militaryand a citizen of Guam, or if you are a civilian employee of themilitary, you are subject to the same rules described in the previousparagraphs. Income tax withheld.Take into account tax withheld by both jurisdictions in determiningif there is tax due or an overpayment. Payment of estimated tax.If you have to pay estimated tax, make your payment to thejurisdiction where you would file your income tax return if your taxyear were to end on the date your estimated tax payment is first due.Generally, you should make your quarterly payments of estimated tax tothe jurisdiction where you made your original estimated tax payment.However, estimated tax payments to either jurisdiction will be treatedas payments to the jurisdiction with which you file the tax return. If you make a joint payment of estimated tax, make your payment tothe jurisdiction where the spouse who has the greater estimatedadjusted gross income would have to pay (if a separate payment weremade). For this purpose, income is determined without regard tocommunity property laws. Example.Bill West is single and files his return on a calendar-year basis.He is a resident of the United States at the time that he must makehis first payment of estimated income tax for the year. Since Billdoes not expect to be a resident of Guam at the end of the year, hepays his estimated tax to the United States by April 15. Later in theyear, however, Bill becomes a resident of Guam and receives incomefrom Guam sources that causes him to refigure his estimated taxpayments. The quarterly estimated tax payments must be made to theUnited States because he was a U.S. resident when his first payment ofestimated tax was due. Because Bill is a resident of Guam at the endof his tax year, he must file his income tax return with Guam. On thatreturn, he claims credit for the estimated tax payments made to theUnited States. Early payment of estimated tax.If you make your first payment of estimated tax early and you donot send it to the jurisdiction to which you would have sent it if youhad not made it early, make all later payments to the otherjurisdiction. Example.Peg Post is single and files her return on a calendar year basis.On March 1, Peg was a resident of the United States and made an earlyfirst payment of estimated income tax to the United States. Before thedue date of her first payment of estimated tax (April 15), she becomesa resident of Guam for the rest of the year. Peg must make the rest ofher payments of estimated tax to Guam because she is a resident ofGuam on the date that her first payment of estimated tax is otherwisedue. At the end of the year, Peg will file her tax return with Guamand claim credit for all estimated tax payments on that return. Estimated tax form.If your estimated income tax obligation is to the United States,use the worksheet in the Form 1040-ES package to figure yourestimated tax, including self-employment tax. You can use the paymentvouchers in the Form 1040-ES package for your payments, or youcan pay by credit card. If your estimated income tax obligation is to Guam, use their formsto figure your estimated income tax and make your payments. You willhave to separately figure your estimated self-employment tax (you canuse the Form 1040-ES package) and make payments with the paymentvouchers to the address given in the Form 1040-ES instructions. Information return.If your adjusted gross income from all sources is at least $50,000,your gross income consists of at least $5,000 from sources in Guam,and you file a U.S. income tax return, attach Form 5074 to Form 1040.You can get Form 5074 from most Internal Revenue Service offices. Note. Guam and the United States have entered into an implementingagreement. The effective date of the agreement, however, has beenindefinitely postponed. Under the agreement, Guam may enact itsown laws for taxing residents of Guam as well as for taxing incomesourced in Guam (or income effectively connected with a trade orbusiness in Guam) and paid to a nonresident. Individuals who are bonafide residents of Guam and have income sourced outside Guam, the CNMI,or American Samoa may have to file a U.S. tax return. Individuals whoare bona fide residents of Guam and have income sourced in any of thethree possessions may be able to treat that income as exempt from U.S.income tax under the possession exclusion rules. Double taxation.A mutual agreement procedure exists to settle cases of doubletaxation between the United States and Guam. See Double Taxationunder Filing Tax Returns, earlier. The Commonwealth of the Northern Mariana Islands The Commonwealth of the Northern Mariana Islands (CNMI) has its owntax system based partly on the same tax laws and tax rates that applyto the United States and partly on local taxes imposed by the CNMIgovernment. Envelope: Requests for advice about CNMI residency and tax matters should beaddressed to: Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. O. Box 5234, CHRB Saipan, MP 96950 If you are a U.S. citizen with income from the CNMI and the UnitedStates, you must file your income tax return with either the CNMI orthe United States as explained below. Do not file with both. You arenot liable for tax to the jurisdiction with which you do not have tofile. If you are a resident of the CNMIon the last day of your tax year, you should file your return withthe Division of Revenue and Taxation at the address above. Include income from worldwide sources on the CNMI return. Includeany balance of tax due with your tax return. If you are a resident of the United Stateson the last day of your tax year, you should file your return withthe Internal Revenue Service Center, Philadelphia, PA 19255-0215. Include income from worldwide sources on the U.S. return. Includeany balance of tax due on your tax return. If you are neither a resident of the CNMI nor a resident ofthe United Statesat the end of your tax year, but you are a citizen of the CNMI, youshould file with the Division of Revenue and Taxation. File with theInternal Revenue Service Center if you are a citizen of the UnitedStates. Joint return.If you file a joint return, you should file it (and pay the tax)with the jurisdiction where the spouse who has the greater adjustedgross income would have to file (if you were filing separately). Ifthe spouse with the greater adjusted gross income is a resident of theCNMI at the end of the tax year, file the joint return with the CNMI.If the spouse with the greater adjusted gross income is a resident ofthe United States at the end of the tax year, file the joint returnwith the United States. For this purpose, income is determined withoutregard to community property laws. Income tax withheld.Take into account tax withheld by both jurisdictions in determiningif there is tax due or an overpayment. Payment of estimated tax.If you must pay estimated tax, make your payment to thejurisdiction where you would file your income tax return if your taxyear were to end on the date your first payment of estimated tax isdue. Generally, you should make your quarterly payments of estimatedtax to the jurisdiction where you made your first payment of estimatedtax. However, estimated tax payments to either jurisdiction will betreated as payments to the jurisdiction with which you file the taxreturn. If you make a joint payment of estimated tax, make the payment tothe jurisdiction where the spouse who has the greater estimatedadjusted gross income would have to file (if a separate declarationwere filed). For this purpose, income is determined without regard tocommunity property laws. Early payment of estimated tax.If you make your first payment of estimated tax early and you donot send it to the jurisdiction to which you should have made it, makeall later payments to the jurisdiction to which the first paymentshould have been made had you not made it early. Estimated tax form.If your estimated income tax obligation is to the United States,use the worksheet in the Form 1040-ES package to figure yourestimated tax, including self-employment tax. You can use the paymentvouchers in the Form 1040-ES package for your payments, or youcan pay by credit card. If your estimated income tax obligation is to the CNMI, use theirforms to figure your estimated income tax and make your payments. Youwill have to separately figure your estimated self-employment tax (youcan use the Form 1040-ES package) and make payments with thepayment vouchers to the address given in the Form 1040-ESinstructions. Information return.If your adjusted gross income from all sources is at least $50,000,your gross income consists of at least $5,000 from sources in theCNMI, and you file a U.S. income tax return, attach Form 5074 to Form1040. You can get Form 5074 from most Internal Revenue Serviceoffices. Note.When the CNMI and the United States enter into an implementingagreement, the CNMI may enact its own laws for taxing residents of theCNMI as well as for taxing income sourced in the CNMI (or incomeeffectively connected with a trade or business in the CNMI) and paidto a nonresident. Individuals who are bona fide residents of the CNMIand have income sourced outside the CNMI, Guam, or American Samoa mayhave to file a U.S. tax return. Individuals who are bona fideresidents of the CNMI and have income sourced in any of the threepossessions may be able to exclude that income under the possessionexclusion rules when an implementing agreement is in effect. American Samoa American Samoa has its own separate and independent tax system.Although its tax laws are modeled on the U.S. Internal Revenue Code,there are certain differences. Envelope: Requests for advice about matters connected with Samoan taxationshould be sent to: Tax Division Government of American Samoa Pago Pago, American Samoa 96799 Residents of American Samoa.If you are a U.S. citizen and a resident of American Samoa, youmust report your gross income from worldwide sources on your Samoantax return. If you report non-Samoan source income on your Samoan taxreturn, you can claim a credit against your Samoan tax liability forincome taxes paid on that income to the United States, a foreigncountry, or another possession. If you are a resident of American Samoa for part of the tax yearand you then leave American Samoa, you must file a tax return withAmerican Samoa for the part of the year you were present in AmericanSamoa. Bona fide residents of American Samoa include military personnelwhose official home of record is American Samoa. Nonresidents of American Samoa.If you are a nonresident of American Samoa, you should report onlyincome from Samoan sources on your Samoan tax return. U.S. citizensresiding in American Samoa are considered residents of American Samoafor income tax purposes. U.S. Government employees.If you are employed in American Samoa by either the U.S. Governmentor any of its agencies, or by the Government of American Samoa, youare subject to tax by American Samoa on your pay from eithergovernment. Whether you are subject to tax by American Samoa on yournon-Samoan source income depends on your status as a resident ornonresident. Wages and salaries paid by the Governments of the United States andAmerican Samoa to their employees are also subject to U.S. federalincome tax. These payments do not qualify for the possessionexclusion, discussed earlier. If you report government wages on both your U.S. and Samoan taxreturns, you can take a credit on your U.S. tax return for incometaxes paid or accrued to American Samoa. Figure that credit on Form1116, and attach that form to your U.S. tax return, Form 1040. Showyour wages paid for services performed in American Samoa on line 1 ofForm 1116 as income from sources in a possession. Estimated tax.If your estimated income tax obligation is to the United States,use the worksheet in the Form 1040-ES package to figure yourestimated tax, including self-employment tax. You can use the paymentvouchers in the Form 1040-ES package for your payments, or youcan pay by credit card. Double taxation.A mutual agreement procedure exists to settle cases of doubletaxation between the United States and American Samoa. See DoubleTaxation, earlier under Filing Tax Returns. The Virgin Islands An important factor in Virgin Islands taxation is whether, on thelast day of the tax year, you are a bona fide resident of the VirginIslands. If you are a temporary worker on the last day of the taxyear, you may or may not be a bona fide resident of the VirginIslands. You should contact the Virgin Islands Bureau of InternalRevenue for more information. Resident of the Virgin Islands.If you are a bona fide resident of the Virgin Islands on the lastday of the tax year, you must file your tax return on Form 1040 withthe Government of the Virgin Islands and pay the entire tax due to theVirgin Islands. You do not have to file with the IRS for any tax yearin which you are a bona fide resident of the Virgin Islands on thelast day of the year, provided you report and pay tax on your incomefrom all sources to the Virgin Islands and identify the source(s) ofthe income on the return. If you have non-Virgin Islands sourceincome, you must also file Virgin Islands Form 1040 INFO,Non-Virgin Islands Source Income of Virgin Islands Residents,with the Virgin Islands Bureau of Internal Revenue. Envelope: You can get Form 1040 INFO by contacting:     Virgin Islands Bureau of Internal Revenue 9601 Estate Thomas Charlotte Amalie St. Thomas, U.S. Virgin Islands 00802 Phone: Telephone number (340) 774-5865 Fax number (340) 714-9345 Example.cheap hotels in StavangerMr. and Mrs. Maple left the United States on June 15, 1999, andarrived in the Virgin Islands on the same day. They qualified as bonafide residents of the Virgin Islands on the last day of their taxyear, December 31, 1999. Mr. and Mrs. Maple file Form 1040 with the Government of the VirginIslands and attach a Form 1040 INFO. The Maples report their worldwideincome and pay the entire tax for the year to the Virgin Islands. Eventhough they lived in the United States part of the year, their incometax obligations for that year are completely satisfied by filing theirreturn with, and paying their tax to, the Virgin Islands Bureau ofInternal Revenue. Non-Virgin Islands resident with Virgin Islands income.If you are not a bona fide resident of the Virgin Islands on thelast day of your tax year, you must file identical tax returns withthe United States and the Virgin Islands if you have: Income from sources in the Virgin Islands, or, Income effectively connected with the conduct of a trade orbusiness in the Virgin Islands. File the original return with the United States and file a copyof the U.S. return (including all attachments, forms, and schedules)with the Virgin Islands Bureau of Internal Revenue by the due date forfiling Form 1040. The amount of tax you must pay to the Virgin Islands is figured asfollows: Formula Form 8689 is used for this computation. You must complete this formand attach it to each copy of your return. You should pay any tax dueto the Virgin Islands when you file your return with the VirginIslands Bureau of Internal Revenue. You receive credit for taxes paidto the Virgin Islands by including the amount on Form 8689, line 32,in the total on Form 1040, line 64. On the dotted line next to line64, write "Form 8689" and show the amount. Do not enter the amount from Form 8689, line 36 on Form 1040. See the illustrated example at the end of this publication. Where to file.If you are not a bona fide resident of the Virgin Islands but youhave income from the Virgin Islands, you must file Form 1040 and allattachments with the Internal Revenue Service Center, Philadelphia, PA19255-0215, and with the Virgin Islands Bureau of InternalRevenue. Envelope: If you are a bona fide resident of the Virgin Islands you shouldfile your return with: Virgin Islands Bureau of Internal Revenue 9601 Estate Thomas Charlotte Amalie St. Thomas, U.S. Virgin Islands 00802 Contact that office forinformation about filing your Virgin Islands tax return. Extensions of time to file.You can get an automatic 4-month extension of time to file your taxreturn by filing Form 4868, Application for Automatic Extensionof Time To File U.S. Individual Income Tax Return. Bona fideresidents of the Virgin Islands must file this form with the VirginIslands Bureau of Internal Revenue. Non-Virgin Islands residentsshould file separate Forms 4868 with the IRS and the Virgin IslandsBureau of Internal Revenue and make any payments due to the respectivejurisdictions. However, the Virgin Islands Bureau of Internal Revenuewill honor an extension request that was timely filed with the IRS. If you need more time after filing Form 4868, file Form 2688,Application for Additional Extension of Time To File U.S.Individual Income Tax Return. For more information, see the Form2688 instructions. Double taxation.A mutual agreement procedure exists to settle cases of doubletaxation between the United States and the Virgin Islands. SeeDouble Taxation under Filing Tax Returns,earlier. The Commonwealthof Puerto Rico The Commonwealth of Puerto Rico has its own separate andindependent tax system. Although it is modeled after the U.S. system,there are differences in law and tax rates. If you are a U.S. citizenwith income from Puerto Rico, you may be liable for Puerto Ricantaxes. You may also be liable for filing a U.S. tax return. Envelope: Requests for information about the filing of Puerto Rican taxreturns should be addressed to the Bureau of Income Tax at thefollowing address: Negociado de Asistencia Contributiva y Legislacion Departmento de Hacienda P.O. Box 565 San Juan, Puerto Rico 00902-6265 Phone: The telephone number is (787) 721-2020, extension 3611. Toobtain Puerto Rican tax forms, contact the Forms and Publications Division Office at the above address or call (787) 721-2020,extensions 2643, 2645, or 2646. Reservaciones online de hoteles baratos HelsingorResidents of Puerto Rico.If you are a U.S. citizen and also a resident of the Commonwealthof Puerto Rico for the entire tax year, you generally must includeincome from worldwide sources on your Puerto Rican return. Wages andcost-of-living allowances paid by the U.S. Government for working inPuerto Rico are subject to Puerto Rican tax. Advice about possible taxbenefits under the Puerto Rican investment incentive programs isavailable from the Puerto Rican tax authorities. If you report U.S.source income on your Puerto Rican tax return, you can claim a creditagainst your Puerto Rican tax, up to the amount allowable, for incometaxes paid to the United States. Nonresidents of Puerto Rico.If you are a U.S. citizen and are not a resident of Puerto Rico,include only your income from Puerto Rican sources on your PuertoRican return. Wages for services performed in Puerto Rico for the U.S.Government or for private employers is income from Puerto Ricansources. U.S. taxation.As a U.S. citizen, you must report gross income from worldwidesources, regardless of where you live. However, a special rule appliesif you are a bona fide resident of Puerto Rico for an entire tax year,or have been a bona fide resident of Puerto Rico for at least 2 yearsand later change your residence from Puerto Rico during a tax year. Income.Income you receive from Puerto Rican sources during your residencein Puerto Rico is exempt from U.S. tax. This includes income for theperiod of Puerto Rican residence in the year you change your residencefrom Puerto Rico if you resided there at least 2 years before thechange. However, income you receive for services performed in PuertoRico as an employee of the United States is not exempt from U.S.income tax. Deductions and credits.Deductions and credits that specifically apply to your exemptPuerto Rican income are not allowable on your U.S. income tax return. Deductions that do not specifically apply to any particular type ofincome must be divided between your income from Puerto Rican sourcesand income from all other sources to find the part that you can deducton your U.S. tax return. Examples of deductions that do notspecifically apply to a particular type of income are alimonypayments, the standard deduction, and certain itemized deductions(such as medical expenses, charitable contributions, and real estatetaxes and mortgage interest on your home). To find the part of a deduction that is allowable, multiply thededuction by the following fraction. Formula Example.You and your spouse are both under 65 and U.S. citizens who arebona fide residents of Puerto Rico for the entire year. You file ajoint income tax return. During 1999, you earned $15,000 from PuertoRican sources and your spouse earned $25,000 from the U.S. Government.You have $16,000 of itemized deductions that do not apply to anyspecific type of income. These are medical expenses of $4,000, realestate taxes of $5,000, home mortgage interest of $6,000, andcharitable contributions of $1,000 (cash contributions). You determinethe amount of each deduction that you can claim on your Schedule A(Form 1040), by multiplying the deduction by the following fraction: Formula SCHEDULE A -Itemized deductions should be modified as shown below: Medical Expenses Formula Real Estate Taxes Home Mortgage Interest Formula Charitable Contributions(cash contributions) Enter on Schedule A (Form 1040) only the allowable portion of eachdeduction. Personal exemptionsare allowed in full and need not be divided. Standard deduction.The standard deduction does not specifically apply to anyparticular type of income. To find the amount you can claim on line 36of Form 1040, multiply your standard deduction by the fraction givenearlier. In the space above line 36, write "Standard deductionmodified due to exempt income under section 933." TaxTip: Make this computation before you determine if you must file a U.S.tax return, because the minimum income level at which you must file areturn is based, in part, on the standard deduction for your filingstatus. Example.James and Joan Brown, both under 65, are U.S. citizens and bonafide residents of Puerto Rico. They file a joint income tax return.During 1999, they received $15,000 of income from Puerto Rican sourcesand $8,000 of income from sources outside Puerto Rico. They do notitemize their deductions. Their allowable standard deduction for 1999is figured as follows: Formula TheBrowns do not have to file a U.S. income tax return because theirgross income ($8,000) is less than their allowable standard deductionplus their exemptions ($2,504 + $5,500 = $8,004). Foreign tax credit.If you are a U.S. citizen and your Puerto Rican income is notexempt, you must report that income on your U.S. tax return along withincome from sources outside Puerto Rico. However, you can claim aforeign tax credit, figured on Form 1116, for income taxes paid toPuerto Rico on the Puerto Rican income that is not exempt. You cannot claim a foreign tax credit for taxes paid on exemptincome. If you have income from Puerto Rican sources, such as U.S.Government wages, that is not exempt, and you have income from PuertoRican sources that is exempt, you must figure the credit by reducingyour foreign taxes paid or accrued by the taxes based on the exemptincome. You make this reduction for each separate income category. Tofind the amount of this reduction, use the following formula for eachincome category. Formula Youenter the amount of the reduction on line 12 of Form 1116. Example.John and Mary Reddy are U.S. citizens and were bona fide residentsof Puerto Rico during all of 1999. They file a joint tax return. Thefollowing table shows their exempt and taxable income for U.S. federalincome tax purposes.   Taxable    Exempt John's wages from U.S. Government $25,000 Mary's wages from a Puerto Rican corp. $15,000 Dividend from Puerto Rican corp. doing businessin P.R. 200 Dividend from U.S. corp. doing business inU.S.*     1,000            Totals   $26,000   $15,200 *Income from sources outside Puerto Rico istaxable. John and Mary must file 1999 income tax returns with both PuertoRico and the United States. They have gross income of $26,000 for U.S.tax purposes. They paid taxes to Puerto Rico of $4,000. The tax on thewages is $3,980 and the tax on the dividend from the Puerto Ricancorporation is $20. They figure their foreign tax credit on two Forms1116, which they must attach to their U.S return. They fill out oneForm 1116 for wages and one Form 1116 for the dividend. John and Maryfigure the Puerto Rican taxes on exempt income as follows. Wages: $15,000 $40,000 $3,980 =$1,493 Dividend: $200 $200 $20 = $20 They enter $1,493 on line 12 of the Form 1116 for wages and $20 online 12 of the Form 1116 for the dividend. Earned income credit.Even if you maintain a household in Puerto Rico that is yourprincipal home and the home of your qualifying child, you cannot claimthe earned income credit on your U.S. tax return. This credit isavailable only if you maintain the household in the United States oryou are serving on extended active duty in the Armed Forces of theUnited States. Estimated tax.If your estimated income tax obligation is to the United States,use the worksheet in the Form 1040-ES package to figure yourestimated tax, including self-employment tax. You can use the paymentvouchers in the Form 1040-ES package for your payments, or youcan pay by credit card. Double taxation.A mutual agreement procedure exists to settle cases of doubletaxation between the United States and the Commonwealth of PuertoRico. See Double Taxation under Filing Tax Returns,earlier.