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)

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

▶ Attach to Form 1040.

OMB No. 1545-0074

2018

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 and Schedule 1 (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 Adjustments to Income From Guam or the CNMI Reported on Schedule 1 (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 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 Tuition and fees deduction (see instructions) . . . . . . . . . . 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.

▲!

CAUTION

At the time this form and instructions went to print, the 

tuition and fees deduction had expired. To see if this 

deduction has been extended so you can claim it on your 

2018 return, go to www.irs.gov/FormsUpdates. 

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).

For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat. No. 42243X Form 5074 (2018)
Form 5074 (2018) Page 2 

• 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.

▲!

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 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 How To Get Tax 

Help in the Instructions for Form 1040.

Part I—Income From Guam or the CNMI Reported on 

Form 1040 and Schedule 1 (Form 1040)

Note. See Schedule 1 (Form 1040) for additional income from Guam or 

the CNMI not reported on Form 1040, 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 

2018 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.

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. 

▲!

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)

Note. See Schedule 1 (Form 1040) 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 28. Include in the total on line 28 the amount of any other

deductions included on Schedule 1 (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 Schedule 1 (Form 1040), line 

36. If you or your spouse had an Archer Medical Savings Account 

deduction on Schedule 1 (Form 1040), line 36, figure the amount to 

report on line 28 the same way you would an IRA deduction (see Line 25

above).

Line 29. Adjusted gross income from worldwide sources is reported on 

line 7 of Form 1040.

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.