PDF document

- 1 -

                              Allocation of Individual Income Tax to Guam or the                            OMB No. 1545-0074
Form 5074                   Commonwealth of the Northern Mariana Islands (CNMI)
Department of the Treasury                        Attach to Form 1040 or 1040-SR.                                  2023
                                                                                                                   Attachment   
Internal Revenue Service                  Go to www.irs.gov/Form5074 for the latest information.                   Sequence No. 168
Name(s) shown on Form 1040 or 1040-SR                                                                  Your social security number 

Part I   Income From Guam or the CNMI
                                                                                                       Guam        CNMI        
1    Wages, salaries, tips, etc.  .   . . . .   . . . . . . . .         . .      . . . . .       1 
2    Taxable interest  .      . . .   . . . .   . . . . . . . .         . .      . . . . .       2 
3    Ordinary dividends  .      . .   . . . .   . . . . . . . .         . .      . . . . .       3 
4    Taxable refunds, credits, or offsets of local Guam or CNMI income taxes       . . . .       4 
5    Alimony received  .      . . .   . . . .   . . . . . . . .         . .      . . . . .       5 
6    Business income or (loss)  .     . . . .   . . . . . . . .         . .      . . . . .       6 
7    Capital gain or (loss)  .  . .   . . . .   . . . . . . . .         . .      . . . . .       7 
8    Other gains or (losses)  .   .   . . . .   . . . . . . . .         . .      . . . . .       8 
9    IRA distributions (taxable amount)  .  .   . . . . . . . .         . .      . . . . .       9 
10   Pensions and annuities (taxable amount)  .   . . . . . . .         . .      . . . . .       10 
11   Rental real estate, royalties, partnerships, S corporations, trusts, etc. . . . . . .       11 
12   Farm income or (loss)      . .   . . . .   . . . . . . . .         . .      . . . . .       12 
13   Unemployment compensation          . . .   . . . . . . . .         . .      . . . . .       13 
14   Social security benefits (taxable amount)  . . . . . . . .         . .      . . . . .       14 
15   Other income. List type and amount                                                          15 
16  Total income. Add lines 1 through 15  .     . . . . . . . .         . .      . . . . .       16 

Part II  Adjustments to Income From Guam or the CNMI                                                                         
17   Educator expenses  .       . .   . . . .   . . . . . . . .         . .      . . . . .       17 
18   Certain business expenses of reservists, performing artists, and fee-basis government 
     officials  . .      .  . . . .   . . . .   . . . . . . . .         . .      . . . . .       18 
19   Health savings account deduction  .    .   . . . . . . . .         . .      . . . . .       19 
20   Moving expenses for members of the armed forces    . . . .         . .      . . . . .       20 
21   Deductible part of self-employment tax     . . . . . . . .         . .      . . . . .       21 
22   Self-employed SEP, SIMPLE, and qualified plans  .  . . . .         . .      . . . . .       22 
23   Self-employed health insurance deduction     . . . . . . .         . .      . . . . .       23 
24   Penalty on early withdrawal of savings  .  . . . . . . . .         . .      . . . . .       24 
25   IRA deduction  .       . . . .   . . . .   . . . . . . . .         . .      . . . . .       25 
26   Student loan interest deduction  .   . .   . . . . . . . .         . .      . . . . .       26 
27   Reserved for future use  .   .   . . . .   . . . . . . . .         . .      . . . . .       27 
28   Reserved for future use  .   .   . . . .   . . . . . . . .         . .      . . . . .       28 
29   Add lines 17 through 28      .   . . . .   . . . . . . . .         . .      . . . . .       29 
30 Adjusted gross income. Subtract line 29 from line 16   . . .         . .      . . . . .       30

Part III Payments of Income Tax to Guam or the CNMI                                                                          
31   Payments on estimated tax return filed with Guam or the CNMI       . .      . . . . .       31 
32   Income tax withheld from your wages while employed by the U.S. Government as a 
     civilian in Guam or the CNMI  .    . . .   . . . . . . . .         . .      . . . . .       32 
33   Income tax withheld from your wages while employed as a member of the U.S. Armed 
     Forces in Guam or the CNMI  .      . . .   . . . . . . . .         . .      . . . . .       33 
34   Income  tax  withheld  from  your  wages  earned  in  Guam  or  the  CNMI  other  than 
     amounts on lines 31 through 33  .    . .   . . . . . . . .         . .      . . . . .       34
35  Total payments. Add lines 31 through 34 .     . . . . . . .         . .      . . . . .       35 
For Paperwork Reduction Act Notice, see the Instructions for Form 1040.                Cat. No. 42243X             Form 5074 (2023)

- 2 -

Enlarge image

[This page left blank intentionally]

- 3 -

Enlarge image

Form 5074 (2023) Page 3
Section references are to the Internal Revenue Code unless • Were a U.S. citizen or resident;
otherwise noted. • Were not a bona fide resident of Guam or the CNMI;
Future Developments • Were not employed by or under contract with an individual,
For the latest information about developments related to Form partnership, or corporation that is engaged in a trade or
5074 and its instructions, such as legislation enacted after they business in Guam or the CNMI;
were published, go to www.irs.gov/Form5074. • Temporarily performed services in Guam or the CNMI for 90
days or less; and
Instructions • Earned $3,000 or less from such services.
Purpose of form. Form 5074 provides information to the United Active duty U.S. Armed Forces. If you are a bona fide
States so the IRS can figure the individual income tax that is resident of Guam or the CNMI and are stationed outside your
due to Guam or the CNMI. territory of residence, your military compensation will be
Who must file. If you were a U.S. citizen or resident alien (other sourced in Guam or the CNMI, as applicable, under the
than a bona fide resident of Guam or the CNMI), you may need Servicemembers Civil Relief Act (SCRA). If you are not a bona
to file Form 5074. Complete this form if all of the following apply fide resident of one of those territories but perform services in
to you (and to your spouse if filing a joint return). one of them, however, your military compensation will not be
sourced there. For further details, see Pub. 570.
• You file a U.S. income tax return.
Military spouses. If you are the civilian spouse of a member
• You report adjusted gross income (AGI) of $50,000 or more. of the U.S. Armed Forces, work in Guam or the CNMI, and
• At least $5,000 of the gross income on your return is from retain a residence or domicile in one of the 50 states or the
either Guam or CNMI sources. District of Columbia under the Military Spouses Residency Relief
Joint returns. If you file jointly and only one spouse is a bona Act (MSRRA), your wages, salaries, tips, and self-employment
fide resident of Guam or the CNMI for the entire tax year, the income will not be considered income from Guam or the CNMI.
resident status for both spouses and subsequent tax treatment Under MSRRA, the military spouse must be in Guam or the
is determined by the spouse with the higher AGI (disregarding CNMI solely to be with their servicemember spouse who is
community property laws). File Form 5074 only if the spouse serving in compliance with military orders. For details on
with the higher AGI is not a bona fide resident of Guam or the MSRRA, see Pub. 570.
CNMI for the entire tax year. • The source of interest income is generally where the payer is
Where to file. If you are not enclosing a check or money order, located. For example, Guam or CNMI source income includes
file your tax return (including Form 5074) with the Department of interest from a certificate of deposit issued by a bank or branch
the Treasury, Internal Revenue Service, Austin, TX 73301-0215 of a U.S. bank in Guam or the CNMI.
USA. • Generally, dividends are sourced where the paying
If you are including a check or money order, file your tax corporation is created or organized.
return with the Internal Revenue Service, P.O. Box 1303, • Taxable refunds, credits, or offsets of local Guam or CNMI
Charlotte, NC 28201-1303 USA. income taxes only include nonmirror code income taxes.
Amended returns. You can e-file Form 1040-X, Amended U.S. • Alimony received from a person who is a bona fide resident of
Individual Income Tax Return, using tax filing software. Go to Guam or the CNMI is sourced in that specific territory.
www.irs.gov/Filing/Amended-Return-Frequently-Asked- • Except as provided in regulations, income that is from sources
Questions for more information. Or, you can send your paper within the United States or effectively connected with the
Form 1040-X to the IRS at the address in the Instructions for conduct of a trade or business in the United States is not
Form 1040-X. income from Guam or the CNMI.
Additional information. See Pub. 570, Tax Guide for Individuals • The source of gains, profits, or income from the sale or
With Income From U.S. Territories, available at www.irs.gov/ disposition of real property (and any interest in real property) is
Pub570. generally where the real property is located.
Part I—Income From Guam or the CNMI Personal property. The source of income from the sale of
Note: See Schedule 1 (Form 1040), Part I, for additional income nondepreciable personal property is generally the seller’s
from Guam or the CNMI not reported on page 1 of your tax residence. For example, if you are a U.S. citizen or resident alien
return. and not a bona fide resident of Guam or the CNMI, gain from
Source of income. The rules for determining the source of the sale or disposition of personal property is generally treated
income are explained in sections 861 through 865 and section as U.S. source. Income from the sale of inventory is generally
937, Regulations section 1.937-2, and chapter 2 of Pub. 570. sourced where the title to the property passes. However, in
Some general rules are: some cases, such as when the taxpayer produces or purchases
the inventory within a U.S. territory, and then sells the inventory
• The source of wages, salaries, or tips is generally where the within the United States, source is based on allocation. See
services are performed. If you worked both in and outside Guam section 865 for details.
or the CNMI, include on line 1 only wages, salaries, or tips
earned while you were in Guam or the CNMI. However, certain Special rules may apply to bona fide residents of U.S.
income earned while temporarily performing services in Guam territories who have gain from dispositions of certain
or the CNMI will not be considered income from Guam or the ▲! investment property within the 10-year period
CAUTION
CNMI. beginning when they became a bona fide resident.
De minimis exception. This is an exception to the general For details, seeSpecial Rules for Gains From Dispositions of
rule for determining the source of income earned in Guam or the Certain Property, in chapter 2 of Pub. 570, Regulations section
CNMI. Generally, income from Guam or the CNMI does not 1.937-2(f)(1), and Examples 1 and 2 of section 1.937-2(k).
include compensation for services performed in Guam or the
CNMI if during 2023 you:

- 4 -

Enlarge image

Form 5074 (2023) Page 4

Part II—Adjustments to Income From Guam or the Line 29. Include in the total on line 29 the amount of any other
CNMI deductions included on the Archer MSA deduction line and the
Note: See Schedule 1 (Form 1040), Part II, for adjustments to Total other adjustments line of Schedule 1 (Form 1040) that are
income from Guam or the CNMI. attributable to your Guam or CNMI income. On the dotted line
next to line 29, enter the name and amount of each deduction
Line 20. For tax years beginning after December 31, 2017, and attributable to your Guam or CNMI income. On line 29, enter the
before January 1, 2026, a moving expense deduction is only total amount of deductions attributable to your Guam or CNMI
allowed for a member of the U.S. Armed Forces who moves income. If you or your spouse had an Archer MSA deduction on
pursuant to a military order and incident to a permanent change Schedule 1 (Form 1040), figure the amount to report on line 29
of station. in the same way as you would an IRA deduction (see Line 25,
Lines 21 through 23.If you had Guam or CNMI source self- earlier).
employment income, figure the amount to enter on each line by Line 30. This amount is your adjusted gross income.
(1) dividing your Guam or CNMI source self-employment income
by your total (worldwide) self-employment income, and (2) Penalty for Failure To Furnish Information
multiplying the total amount of each deduction that applies to If you became or ceased to be a bona fide resident of a U.S.
you by the result in (1). territory, you may be required to file Form 8898, Statement for
Line 24. Enter the amount of penalty on early withdrawals from Individuals Who Begin or End Bona Fide Residence in a U.S.
savings accounts in banks or branches of U.S. banks located in Possession. If you fail to provide the required information, you
Guam or the CNMI. The Form 1099-INT or Form 1099-OID you may have to pay a $1,000 penalty for each failure unless you
received will show the amount of any penalty you were charged. can show the failure was due to reasonable cause and not willful
Line 25. Enter the total of your and your spouse’s IRA neglect. This penalty is in addition to any criminal penalty
deductions attributable to Guam or CNMI compensation or provided by law. For details, see the Instructions for Form 8898.
earned income. Figure the amount to report on line 25 by (1)
dividing your Guam or CNMI compensation or earned income
by your total (worldwide) compensation or earned income, and
(2) multiplying the amount of your IRA deduction by the result in
(1). Figure the amount of your spouse’s IRA deduction the same
way.

PDF file checksum: 488677163

(Plugin #1/9.12/13.0)