Form 4563 is a tax form created by the IRS to determine the amount of income earned in American Samoa that should be excluded from a taxpayer’s gross income. It is only necessary for taxpayers who are bona fide residents of American Samoa or do business there.
What is Form 4563?
Form 4563 is an IRS form used by taxpayers who are either residents or do business in American Samoa to determine the amount of income earned in the area that can be excluded from their gross income. The form uses the 183-day rule, the physical-presence test, and other criteria from the Internal Revenue Code to determine a person’s status as a bona-fide resident of the unincorporated US territory. When filing taxes, those who qualify for the exclusion must attach Form 4563 to their 1040 form and submit it to the IRS. It is available for free on the IRS website.
IRS Form 4563 – Who Needs to Fill It Out?
IRS Form 4563 – Who Needs to Fill It Out? Form 4563: Exclusion of Income for Bona Fide Residents of American Samoa is necessary for taxpayers who are bona fide residents of American Samoa and those who do business there. This form helps to determine the amount of income earned in American Samoa that can be excluded from a taxpayer’s gross income. To qualify, an individual must live and/or do business in American Samoa for at least 183 days and must have spent at least 549 days in American Samoa during the last three years. Form 4563 must be completed electronically and attached to Form 1040 when filing taxes.
Step-by-Step: Form 4563 Instructions For Filling Out the Document
Filing Form 4563, “Exclusion of Income for Bona Fide Residents of American Samoa”, requires some key steps. First, only taxpayers who are residents of American Samoa or who do business there should fill out the Form, and they must also meet the definition of “Bona Fide Residents” according to the physical-presence test outlined in Internal Revenue Code 937. Second, use the Form to determine the amount of income earned in American Samoa that can be excluded from the taxpayer’s gross income. This includes dividend income from companies created or organised in American Samoa, but excludes wages, salaries, and tips earned outside the territory. Lastly, attach the completed Form 4563 to a tax return when filing – simply the Form by itself is not accepted. Form 4563 is available on the IRS website.
Below, we present a table that will help you understand how to fill out Form 4563.
| Information Required for Form 4563 | Details |
|---|---|
| Eligibility | Must be a resident of American Samoa and meet the definition of “Bona Fide Residents” as per IRS guidelines. |
| Excludable Income | Determine the income earned in American Samoa that can be excluded from gross income. |
| Included Income | Dividend income from companies created or organized in American Samoa. |
| Excluded Income | Wages, salaries, and tips earned outside of American Samoa. |
| Filing Process | Attach the completed Form 4563 to a tax return when filing; submitting the form alone is not accepted. |
| Form Availability | Form 4563 is available on the IRS website. |
Do You Need to File Form 4563 Each Year?
Do You Need to File Form 4563: Exclusion of Income for Bona Fide Residents of American Samoa Each Year? Form 4563 is only necessary for taxpayers who are bona fide residents of American Samoa or conduct business there. The IRS focuses on the source of the income when determining what income can be excluded from taxpayers’ claims. To be considered a resident of American Samoa, individuals must live there for a minimum of 183 days, as well as meet the five rules of the physical-presence test. These guidelines and more are outlined in the United States Internal Revenue Code. If you meet these criteria, file Form 4563 and attach it to your Form 1040 when you file your income tax return.
Download the official IRS Form 4563 PDF
On the official IRS website, you will find a link to download Form 4563: Exclusion of Income for Bona Fide Residents of American Samoa. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 4563
Sources:
https://www.irs.gov/forms-pubs/about-form-4563
