Form 5074 

Department of the Treasury 

Internal Revenue Service 

Allocation of Individual Income Tax to Guam or the 

Commonwealth of the Northern Mariana Islands (CNMI)

Attach to Form 1040 or 1040-SR. 

Go to www.irs.gov/Form5074 for the latest information.

OMB No. 1545-0074

2023

Attachment 

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)
[This page left blank intentionally]
Form 5074 (2023) Page 3 

Section references are to the Internal Revenue Code unless 

otherwise noted.

Future Developments

For the latest information about developments related to Form 

5074 and its instructions, such as legislation enacted after they 

were published, go to www.irs.gov/Form5074.

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 tax return (including Form 5074) with the Department of 

the Treasury, Internal Revenue Service, Austin, TX 73301-0215 

USA.

If you are including a check or money order, file your tax 

return with the Internal Revenue Service, P.O. Box 1303, 

Charlotte, NC 28201-1303 USA.

Amended returns. You can e-file Form 1040-X, Amended U.S. 

Individual Income Tax Return, using tax filing software. Go to 

www.irs.gov/Filing/Amended-Return-Frequently-AskedQuestions for more information. Or, you can send your paper 

Form 1040-X to the IRS at the address in the Instructions for 

Form 1040-X.

Additional information. See Pub. 570, Tax Guide for Individuals 

With Income From U.S. Territories, available at www.irs.gov/

Pub570. 

Part I—Income From Guam or the CNMI

Note: See Schedule 1 (Form 1040), Part I, for additional income 

from Guam or the CNMI not reported on page 1 of your tax 

return.

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 is generally 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 2023 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 their servicemember spouse who is 

serving in compliance with military orders. For details on 

MSRRA, see Pub. 570.

• The source of interest income is generally 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 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) is 

generally where the real property is located.

Personal property. The source of income from the sale of 

nondepreciable personal property is generally the seller’s 

residence. For example, if you are a U.S. citizen or resident alien 

and not a bona fide resident of Guam or the CNMI, gain from 

the sale or disposition of personal property is generally treated 

as U.S. source. Income from the sale of inventory is generally 

sourced where the title to the property passes. However, in 

some cases, such as when the taxpayer produces or purchases 

the inventory within a U.S. territory, and then sells the inventory 

within the United States, source is based on allocation. See 

section 865 for details. 

▲!

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). 
Form 5074 (2023) Page 4 

Part II—Adjustments to Income From Guam or the 

CNMI

Note: See Schedule 1 (Form 1040), 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 selfemployment 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).

Line 24. Enter the amount of penalty on early withdrawals from

savings accounts in banks or branches of U.S. banks located in

Guam or the CNMI. The Form 1099-INT or Form 1099-OID you

received will show the amount of any penalty you were charged.

Line 25. Enter the total of your and your spouse’s IRA 

deductions attributable to Guam or CNMI compensation or 

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.

Line 29. Include in the total on line 29 the amount of any other

deductions included on the Archer MSA deduction line and the 

Total other adjustments line of Schedule 1 (Form 1040) that are 

attributable to your Guam or CNMI income. On the dotted line 

next to line 29, enter the name and amount of each deduction 

attributable to your Guam or CNMI income. On line 29, enter the 

total amount of deductions attributable to your Guam or CNMI 

income. If you or your spouse had an Archer MSA deduction on 

Schedule 1 (Form 1040), figure the amount to report on line 29 

in the same way as you would an IRA deduction (see Line 25, 

earlier).

Line 30. This amount is your adjusted gross income. 

Penalty for Failure To Furnish Information

If you became or ceased to be a bona fide resident of a U.S. 

territory, you may be required to file Form 8898, Statement for 

Individuals Who Begin or End Bona Fide Residence in a U.S. 

Possession. If you fail to provide the required information, you 

may have to pay a $1,000 penalty for each failure unless you 

can show the failure was due to reasonable cause and not willful 

neglect. This penalty is in addition to any criminal penalty 

provided by law. For details, see the Instructions for Form 8898.