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.

OMB No. 1545-0074

2011

Attachment 

Sequence No. 168

Name(s) shown on Form 1040 Your social security number 

Part I Income From Guam or the CNMI Reported on Form 1040

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 Adjusted Gross Income From Guam or the CNMI Reported on Form 1040

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 . . . . . . . . . . . . . . . . . . . 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 Tuition and fees deduction . . . . . . . . . . . . . . . . 27 

28 Add lines 17 through 27 . . . . . . . . . . . . . . . . . 28 

29 Adjusted gross income. Subtract line 28 from line 16. . . . . . ▶ 29 

Part III Payments of Income Tax to Guam or the CNMI

30 Payments on estimated tax return filed with Guam or the CNMI . . . . 30 

31 Income tax withheld from your wages while employed by the U.S. 

Government as a civilian in Guam or the CNMI . . . . . . . . . 31 

32 Income tax withheld from your wages while employed as a member of the

U.S. Armed Forces in Guam or the CNMI . . . . . . . . . . . 32 

33 Income tax withheld from your wages earned in Guam or the CNMI other 

than amounts on lines 30 through 32 . . . . . . . . . . . . 33 

34 Total payments. Add lines 30 through 33. . . . . . . . . . ▶ 34 

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 AGI of $50,000 or more.

• At least $5,000 of the gross income on your return is from either 

Guam or CNMI sources.

(Continued on back)

For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 42243X Form 5074 (2011)
Form 5074 (2011) Page 2 

▲!

CAUTION

Do not use this form if you were a bona fide resident of 

Guam or the CNMI during the entire tax year, or were 

considered a bona fide resident of Guam or the CNMI for 

the entire tax year under the special rules for the year 

of a move (see chapter 1 of Pub. 570, Tax Guide for Individuals With 

Income From U.S. Possessions).

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 adjusted gross income 

(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 (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.

Additional information. Pub. 570 has more information and an

example of how to complete Form 5074. To get Pub. 570, see

Quick and Easy Access to Tax Help and Tax Products in the

Instructions for Form 1040.

Part I—Income From Guam or the CNMI 

Reported on Form 1040

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. For details, 

see De minimis exception on this page.

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. MSRRA applies to qualified individuals for the 

2009 calendar year or subsequent years. 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 possession.

• 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) 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 bona fide resident of Guam or the CNMI, 

gain from the sale or disposition of personal property is generally 

from sources within Guam or the CNMI. Income from the sale of 

inventory is generally sourced where the title to the property 

passes. See section 865 for details. 

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 

2011 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.

▲!

CAUTION

Special rules may apply to bona fide residents of U.S. 

possessions 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—Adjusted Gross Income From Guam 

or the CNMI Reported on Form 1040

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 28. Include in the total on line 28 the amount of any other

deductions included on Form 1040, line 36, that are attributable to

your Guam or CNMI income. On the dotted line next to line 28,

enter the amount of each deduction attributable to your Guam or

CNMI income and identify it as you did on Form 1040, line 36. If you 

or your spouse had an Archer MSA deduction on Form 1040, line 

36, figure the amount to report on line 28 the same way you would 

an IRA deduction (see Line 25, above).

Penalty for Failure To Furnish Information

If, in tax year 2001 or later, you became or ceased to be a bona fide 

resident of a U.S. possession, 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.