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                                                                                                           OMB No. 1545-0074
                              Allocation of Individual Income Tax to Guam or the  
Form 5074                   Commonwealth of the Northern Mariana Islands (CNMI)
Department of the Treasury                       ▶ Attach to Form 1040 or 1040-SR.                                Attachment  2021
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 (2021)

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Form 5074 (2021) Page 3

Section references are to the Internal Revenue Code unless De minimis exception. This is an exception to the general
otherwise noted. rule for determining the source of income earned in Guam or the
CNMI. Generally, income from Guam or the CNMI does not
Future Developments include compensation for services performed in Guam or the
For the latest information about developments related to Form CNMI if during 2021 you:
5074 and its instructions, such as legislation enacted after they • Were a U.S. citizen or resident;
were published, go to www.irs.gov/Form5074.
• Were not a bona fide resident of Guam or the CNMI;
What’s New • Were not employed by or under contract with an individual,
For tax year 2021, the tuition and fees deduction has been partnership, or corporation that is engaged in a trade or
repealed and the charitable contributions deduction is no longer business in Guam or the CNMI;
an adjustment to income. See the Instructions for Form 1040 for • Temporarily performed services in Guam or the CNMI for 90
more information on deducting charitable contributions. days or less; and
• Earned $3,000 or less from such services.
Instructions Active duty U.S. Armed Forces. If you are a bona fide
Purpose of form. Form 5074 provides information to the United resident of Guam or the CNMI and are stationed outside your
States so the IRS can figure the individual income tax that is territory of residence, your military compensation will be
due to Guam or the CNMI. sourced in Guam or the CNMI, as applicable, under the
Who must file. If you were a U.S. citizen or resident alien (other Servicemembers Civil Relief Act (SCRA). If you are not a bona
than a bona fide resident of Guam or the CNMI), you may need fide resident of one of those territories but perform services in
to file Form 5074. Complete this form if all of the following apply one of them, however, your military compensation will not be
to you (and to your spouse if filing a joint return). 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
Act (MSRRA), your wages, salaries, tips, and self-employment
Joint returns. If you file jointly and only one spouse is a bona income will not be considered income from Guam or the CNMI.
fide resident of Guam or the CNMI for the entire tax year, the Under MSRRA, the military spouse must be in Guam or the
resident status for both spouses and subsequent tax treatment CNMI solely to be with his/her servicemember spouse who is
is determined by the spouse with the higher AGI (disregarding serving in compliance with military orders. For details on
community property laws). File Form 5074 only if the spouse MSRRA, see Pub. 570.
with the higher AGI is not a bona fide resident of Guam or the
CNMI for the entire tax year. • The source of interest income is generally where the payer is
located. For example, Guam or CNMI source income includes
Where to file. If you are not enclosing a check or money order, interest from a certificate of deposit issued by a bank or branch
file your tax return (including Form 5074) with the Department of of a U.S. bank in Guam or the CNMI.
the Treasury, Internal Revenue Service Center, Austin, TX
73301-0215 USA. • Generally, dividends are sourced where the paying
corporation is created or organized.
If you are including a check or money order, file your tax
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. Send your Form 1040-X to the IRS at the • Alimony received from a person who is a bona fide resident of
address in the Instructions for Form 1040-X. Guam or the CNMI is sourced in that specific territory.
Additional information. Pub. 570, Tax Guide for Individuals • Except as provided in regulations, income that is from sources
With Income From U.S. Possessions, has more information and within the United States or effectively connected with the
an example of how to complete Form 5074. To get Pub. 570, conduct of a trade or business in the United States is not
see How To Get Tax Help in the Instructions for Form 1040. income from Guam or the CNMI.
• The source of gains, profits, or income from the sale or
Part I—Income From Guam or the CNMI disposition of real property (and any interest in real property) is
Note: See Schedule 1 (Form 1040), Part I, for additional income generally where the real property is located.
from Guam or the CNMI not reported on page 1 of your tax Personal property. The source of income from the sale of
return. nondepreciable personal property is generally the seller’s
Source of income.The rules for determining the source of residence. For example, if you are a bona fide resident of Guam
income are explained in sections 861 through 865 and section or the CNMI, gain from the sale or disposition of personal
937, Regulations section 1.937-2, and chapter 2 of Pub. 570. property is generally from sources within Guam or the CNMI.
Some general rules are: Income from the sale of inventory is generally sourced where
• The source of wages, salaries, or tips is generally where the the title to the property passes. See section 865 for details.
services are performed. If you worked both in and outside Guam Special rules may apply to bona fide residents of U.S.
or the CNMI, include on line 1 only wages, salaries, or tips territories who have gain from dispositions of certain
earned while you were in Guam or the CNMI. However, certain ▲! investment property within the 10-year period
income earned while temporarily performing services in Guam CAUTION beginning when they became a bona fide resident.
or the CNMI will not be considered income from Guam or the For details, see Special Rules for Gains From Dispositions of
CNMI. Certain Property, in chapter 2 of Pub. 570, Regulations section
1.937-2(f)(1), and Examples 1 and 2 of section 1.937-2(k).

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Form 5074 (2021) Page 4

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

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