File Territory of American Samoa Taxes

Although technically an American possession, American Samoa has its own taxation department.

The territory has a separate and independent income tax system modeled on the U.S. Internal Revenue Code as in effect on December 31, 2000. Although modeled on the Internal Revenue Code, there are certain differences with current U.S. tax law.

Residents who are native to the territory are not required to file U.S. taxes in many cases. However, Americans who are not native to the territory, but rather live and work there, are still required to file territorial taxes with the territory and may also have federal filing obligations with the IRS, depending on their specific circumstances.

Bona fide residents of the territory generally do not include in their gross income: 

(1) income derived from sources within the territory, and (2) income effectively connected with the conduct of a trade or business within the territory. 

To qualify as a bona fide resident for tax purposes, individuals must meet three tests beginning in tax year 2006: the presence test, no tax home outside the territory, and no closer connection to the United States or a foreign country than to the territory. 

Individuals who change their residency to or from the territory must file Form 8898 with the IRS Philadelphia Service Center. More information on bona fide residency requirements can be found on the IRS website, here.

Because it is self-governing, it has its own taxation department and its own array of return forms that must be used by taxpayers. People who are uncertain about what forms to utilize when filing territorial taxes can contact the taxation department by phone at 684-633-4181 or in writing at:

American Samoa Government Tax Office Executive Office Building Pago Pago, AS 96799

They can also go online to the government website at www.americansamoa.gov/tax-office-page. If they have specific concerns about whether or not they must pay U.S. taxes, as well as taxes to the territory, people are advised to visit the IRS' website and refer to Publication 570. This publication answers some of the most common questions that non-residents have about filing territory and federal taxes.

Filing Requirements and Tax Credits

Bona fide residents who also have U.S. filing obligations can have certain sources of income held exempt from taxation. For example, a U.S. citizen who is also a resident of the territory and earns income from worldwide sources can file IRS Form 4563 to request that the worldwide sources of income be exempt from U.S. taxation.

Bona fide residents generally cannot claim the Earned Income Credit, Additional Child Tax Credit, Credit for Other Dependents, or American Opportunity Tax Credit on U.S. income tax returns filed with the IRS. These credits may only be claimed on territorial income tax returns if eligible. Residents should contact the American Samoa Government Tax Office to determine if similar credits are available on territorial returns and their eligibility requirements. However, if a bona fide resident must report income from the territory on a U.S. income tax return, they can claim a Foreign Tax Credit for income taxes paid to the territory on that income.

Self-Employment and Investment Income

Bona fide residents of the territory who earn incomes derived from sources on the island generally do not include this income in their U.S. gross income. However, amounts paid for services performed as an employee of the United States or any agency thereof are not excluded and must be reported to the IRS. People who are self-employed are required to file IRS Form 1040-SS to pay self-employment taxes that will be used for social programs like Medicare and Social Security.

Residents who derive income from investments are required to file and submit Form 8960 to pay the appropriate taxes on those monies, if applicable. Payments for taxes derived from investments and self-employment can be mailed to:
Internal Revenue Service P.O. Box 1300 Charlotte, NC 28201-1300 USA

Federal government employees must file both federal tax returns and territorial returns. However, on their territorial returns, U.S. federal employees can request that their U.S.-based income be held exempt from territorial taxation. U.S. military members are only required to file federal income tax returns. They do not have to file territorial returns.

Frequently Asked Questions

What is the difference between the territorial and U.S. tax systems?
The territory has a separate and independent income tax system modeled on the U.S. Internal Revenue Code as in effect on December 31, 2000. While modeled on the U.S. tax code, there are certain differences with current U.S. tax law. Residents should contact the American Samoa Government Tax Office for specific information about territorial tax provisions.

Can I claim federal tax credits on my U.S. return?
Bona fide residents generally cannot claim the Earned Income Credit, Additional Child Tax Credit, Credit for Other Dependents, or American Opportunity Tax Credit on U.S. returns filed with the IRS. These credits may only be claimed on territorial returns if eligible. Contact the American Samoa Government Tax Office to determine availability and eligibility.

Do I need to notify anyone if I become or stop being a resident?
Yes. Individuals who change their residency to or from the territory must file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Territory, with the IRS Philadelphia Service Center on the due date of their income tax return, including extensions. This form is not attached to Form 1040.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.