Form 5074 (2019)
Page 3
Section references are to the Internal Revenue Code unless
otherwise noted.
Instructions
Purpose of form. Form 5074 provides information to the United
States so the IRS can figure the individual income tax that is
due to Guam or the CNMI.
Who must file. If you were a U.S. citizen or resident alien (other
than a bona fide resident of Guam or the CNMI), you may need
to file Form 5074. Complete this form if all of the following apply
to you (and to your spouse if filing a joint return).
• You file a U.S. income tax return.
• You report adjusted gross income (AGI) of $50,000 or more.
• At least $5,000 of the gross income on your return is from
either Guam or CNMI sources.
Joint returns. If you file jointly and only one spouse is a bona
fide resident of Guam or the CNMI for the entire tax year, the
resident status for both spouses and subsequent tax treatment
is determined by the spouse with the higher AGI (disregarding
community property laws). File Form 5074 only if the spouse
with the higher AGI is not a bona fide resident of Guam or the
CNMI for the entire tax year.
Where to file. If you are not enclosing a check or money order,
file your Form 1040 or 1040-SR (including Form 5074) with the
Department of the Treasury, Internal Revenue Service Center,
Austin, TX 73301-0215 USA.
If you are including a check or money order, file your return
with the Internal Revenue Service, P.O. Box 1303, Charlotte, NC
28201-1303 USA.
Amended returns. Send your Form 1040-X to the IRS at the
address in the Instructions for Form 1040-X.
Additional information. Pub. 570 has more information and an
example of how to complete Form 5074. To get Pub. 570, see
How To Get Tax Help in the Instructions for Forms 1040 and
1040-SR.
Part I—Income From Guam or the CNMI Reported on
Form 1040, 1040-SR, or Schedule 1 (Form 1040 or
1040-SR), Part I
Note: See Schedule 1 (Form 1040 or 1040-SR), Part I, for
additional income from Guam or the CNMI not reported on
Form 1040 or 1040-SR, page 2.
Source of income. The rules for determining the source of
income are explained in sections 861 through 865 and section
937, Regulations section 1.937-2, and chapter 2 of Pub. 570.
Some general rules are:
• The source of wages, salaries, or tips generally is where the
services are performed. If you worked both in and outside Guam
or the CNMI, include on line 1 only wages, salaries, or tips
earned while you were in Guam or the CNMI. However, certain
income earned while temporarily performing services in Guam
or the CNMI will not be considered income from Guam or the
CNMI.
De minimis exception. This is an exception to the general
rule for determining the source of income earned in Guam or the
CNMI. Generally, income from Guam or the CNMI does not
include compensation for services performed in Guam or the
CNMI if during 2019 you:
• Were a U.S. citizen or resident;
• Were not a bona fide resident of Guam or the CNMI;
• Were not employed by or under contract with an individual,
partnership, or corporation that is engaged in a trade or
business in Guam or the CNMI;
• Temporarily performed services in Guam or the CNMI for 90
days or less; and
• Earned $3,000 or less from such services.
Active duty U.S. Armed Forces. If you are a bona fide
resident of Guam or the CNMI and are stationed outside your
territory of residence, your military compensation will be
sourced in Guam or the CNMI, as applicable, under the
Servicemembers Civil Relief Act (SCRA). If you are not a bona
fide resident of one of those territories but perform services in
one of them, however, your military compensation will not be
sourced there. For further details, see Pub. 570.
Military spouses. If you are the civilian spouse of a member
of the U.S. Armed Forces, work in Guam or the CNMI, and
retain a residence or domicile in one of the 50 states or the
District of Columbia under the Military Spouses Residency Relief
Act (MSRRA), your wages, salaries, tips, and self-employment
income will not be considered income from Guam or the CNMI.
Under MSRRA, the military spouse must be in Guam or the
CNMI solely to be with his/her servicemember spouse who is
serving in compliance with military orders. For details on
MSRRA, see Pub. 570.
• The source of interest income generally is where the payer is
located. For example, Guam or CNMI source income includes
interest from a certificate of deposit issued by a bank or branch
of a U.S. bank in Guam or the CNMI.
• Generally, dividends are sourced where the paying
corporation is created or organized.
• Taxable refunds, credits, or offsets of local Guam or CNMI
income taxes only include nonmirror code income taxes.
• Alimony received from a person who is a bona fide resident of
Guam or the CNMI is sourced in that specific territory.
• Except as provided in regulations, income earned after
December 31, 2004, that is from sources within the United
States or effectively connected with the conduct of a trade or
business in the United States is not income from Guam or the
CNMI.
• The source of gains, profits, or income from the sale or
disposition of real property (and any interest in real property)
generally is where the real property is located.
Personal property. The source of income from the sale of
nondepreciable personal property generally is the seller’s
residence. For example, if you are a bona fide resident of Guam
or the CNMI, gain from the sale or disposition of personal
property generally is from sources within Guam or the CNMI.
Income from the sale of inventory generally is sourced where
the title to the property passes. See section 865 for details.
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CAUTION
Special rules may apply to bona fide residents of U.S.
territories who have gain from dispositions of certain
investment property within the 10-year period
beginning when they became a bona fide resident.
For details, see Special Rules for Gains From Dispositions of
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).
Part II—Adjustments to Income From Guam or the
CNMI Reported on Schedule 1 (Form 1040 or
1040-SR), Part II
Note: See Schedule 1 (Form 1040 or 1040-SR), Part II, for
adjustments to income from Guam or the CNMI.
Line 20. For tax years beginning after December 31, 2017, and
before January 1, 2026, a moving expense deduction is only
allowed for a member of the U.S. Armed Forces who moves
pursuant to a military order and incident to a permanent change
of station.
Lines 21 through 23. If you had Guam or CNMI source self-
employment income, figure the amount to enter on each line by
(1) dividing your Guam or CNMI source self-employment income
by your total (worldwide) self-employment income, and (2)
multiplying the total amount of each deduction that applies to
you by the result in (1).
