IRS Form 4563: American Samoa income exclusion guide for 2026

Written by  Susan Turcotte, CPA

Last updated Aug 21, 2026

Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, allows qualifying US citizens and resident aliens to exclude American Samoa-sourced income from their US federal taxable income.

IRS Form 4563 is filed as an attachment to your Form 1040. Eligibility hinges on meeting the bona fide residence test for American Samoa – you must have been a bona fide resident for the entire tax year.

The exclusion covers wages, self-employment income, rental income, and other income sourced in American Samoa or effectively connected with a trade or business there.

The excluded amount isn’t entered anywhere on your Form 1040; you simply leave that income off your return and attach Form 4563 to document the exclusion. You report only your worldwide income that doesn’t qualify for the exclusion

Who must file IRS Form 4563?

You must have been a bona fide resident of American Samoa for all of tax year 2025 to claim the exclusion on your 2026 return.

Three requirements must be met:

• US citizen or resident alien. The exclusion is not available to nonresident aliens.
• Bona fide resident of American Samoa for the entire tax year. Part-year residents generally do not qualify.
• Income sourced in American Samoa or effectively connected with a trade or business there. US-sourced income does not qualify, even if you received it while living in American Samoa.

Tax form 4563 applies only to bona fide residents of American Samoa – not to residents of other US territories such as Puerto Rico, Guam, or the US Virgin Islands. Each of those territories has its own tax rules and forms.

US government employees stationed in American Samoa cannot exclude their federal compensation. American Samoa government employees can exclude their territorial compensation.

Bona fide residence test for American Samoa: Key criteria

The IRS applies a facts-and-circumstances analysis – no single factor is automatically decisive in determining bona fide residence in American Samoa.

To qualify, you must satisfy three tests during the tax year:

1. Presence test. You must be physically present in American Samoa for at least 183 days during the tax year (IRC §937(a)(1)). There are alternative ways to satisfy this test in certain circumstances (see the Form 8898 instructions and Pub. 570), but the 183-day count is the standard most readers should track. Brief absences for vacation, business, or family matters count against this total but don’t automatically disqualify you if your total days present still clear the threshold.
2. Tax home test. Your tax home – your regular place of business or employment – must be in American Samoa, not in the US or another country.
3. Closer connection test. You must have stronger ties to American Samoa than to the US or any foreign country.

The IRS evaluates several factors when determining whether you meet these tests:

1. Your stated intention to remain in American Samoa
2. Whether you established a permanent home there
3. Your participation in community life – voting, memberships, local ties
4. Whether your living arrangement suggests a temporary stay

A temporary absence from American Samoa does not automatically break your bona fide residence. However, the IRS will weigh how long you were away, why you left, and whether you maintained your American Samoa home during the absence.

If the IRS determines you were not a bona fide resident, the consequences can be significant.

What income qualifies for the American Samoa exclusion?

Only income that is sourced in American Samoa or effectively connected with a trade or business conducted there is eligible for exclusion on Form 4563.

Income that qualifies:

• Wages, salaries, and tips earned from an American Samoa employer for services performed in American Samoa
• Self-employment income from a business operated in American Samoa
• Rental income from property located in American Samoa
• Interest, dividends, and capital gains sourced in American Samoa or connected to an American Samoa trade or business

Income that does not qualify:

• Wages earned from a US employer for work performed outside American Samoa
• Investment income from US securities – even if you are a bona fide resident of American Samoa
• Retirement distributions from US-based plans
• Income from sources outside American Samoa that is not connected to an American Samoa trade or business

The sourcing rules matter. A bona fide resident who earns a salary from a US-based remote employer is generally earning US-sourced income – not American Samoa-sourced income – and that salary cannot be excluded on Form 4563.

Form 4563 vs. Form 2555: Key differences explained

Unlike Form 2555, which covers foreign countries worldwide, Form 4563 applies exclusively to bona fide residents of American Samoa and excludes possession-sourced income rather than foreign earned income.

A taxpayer cannot claim both exclusions for the same income. If you are a bona fide resident of American Samoa, your American Samoa-sourced income goes on Form 4563 – not Form 2555.

Form 2555 is for US citizens and resident aliens living in foreign countries.

American Samoa is a US territory, not a foreign country, so the Foreign Earned Income Exclusion does not apply to American Samoa-sourced income.

One important similarity: neither exclusion eliminates self-employment tax. If you have net self-employment earnings of $400 or more, you owe SE tax regardless of which exclusion you claim.

How to complete Form 4563: Part I – general information

Part I of Form 4563 establishes your identity and confirms the period of bona fide residence that qualifies you for the American Samoa income exclusion.

Federal Form 4563 is filed as an attachment to your Form 1040 or 1040-SR. Part I walks through six items that help the IRS evaluate whether you meet the bona fide residence test:

1. Date bona fide residence began (and ended, if applicable). Enter the date your bona fide residence in American Samoa began and, if it ended during the year, the date it ended.
2. Type of living quarters in American Samoa. Indicate whether you own, rent, or are provided housing by your employer. The IRS uses this to assess the permanence of your residence.
3. Family members. List the names and relationships of family members who lived with you in American Samoa during the tax year.
4. Homes outside American Samoa. Disclose any other homes you maintained outside the territory.
5. Employer information. Provide your employer’s name and address. If your American Samoa employer did not issue a W-2, you may need to file Form 4852 as a substitute.
6. Days absent from American Samoa. Complete a table listing each period you were absent, including the dates you left and returned, the number of days absent, and the reason for each absence.

How to complete Form 4563: Part II – figuring your exclusion

Line 15 of Form 4563 is the final exclusion amount – the net American Samoa-sourced income after allocable deductions – which you simply leave off your Form 4563-eligible income when you file your Form 1040, rather than entering it as a separate reduction.

The Form 4563 instructions require you to report each type of qualifying American Samoa-sourced income on its designated line. Form 4563 breaks Part II into eight income-category lines (Lines 7–14), plus Line 15, which totals them into your exclusion amount.

1. Line 7 – Wages, salaries, tips. Enter the total compensation earned for services performed in American Samoa.
2. Line 8 – Taxable interest. Interest income from American Samoa sources.
3. Line 9 – Ordinary dividends. Dividends from American Samoa-sourced investments.
4. Line 10 – Business income. Net self-employment income from an American Samoa business.
5. Line 11 – Capital gain. Gains from the sale of American Samoa property or AS-connected assets.
6. Line 12 – Rental real estate, royalties, partnerships, S corporations, trusts. Net income from American Samoa rental property or pass-through entities.
7. Line 13 – Farm income or loss. Net farming income from American Samoa operations.
8. Line 14 – Other income. Any other qualifying American Samoa-sourced income not covered above.
9. Line 15 – Total exclusion. The sum of Lines 7 through 14. This is the figure that reduces your US taxable income.
10. The IRS Form 4563 instructions direct you to leave the Line 15 amount off your Form 1040 entirely; Schedule 1 has no line for the American Samoa exclusion.

Based on a common TFX client scenario:

Sarah is a bona fide resident of American Samoa who earned $55,000 in wages from her American Samoa employer and $5,500 in net rental income from property she owns in Pago Pago. She has $1,200 in deductions allocable to her American Samoa rental income.

• Line 7: $55,000
• Line 12: $5,500 minus $1,200 allocable deduction = $4,300
• Lines 8–11, 13–14: $0
• Line 15: $59,300

Sarah leaves the $59,300 off her Form 1040 entirely, reducing her US taxable income by that amount.

What is Form 4563 line 15?

Line 15 is the total exclusion amount – the sum of all qualifying American Samoa-sourced income reported on Lines 7 through 14.

Line 15 is the number that ultimately reduces your US taxable income – it is the figure you leave off your Form 1040 altogether.

If you have both income and losses from different American Samoa sources, the losses reduce the total. For example, a taxpayer with $50,000 in American Samoa wages and a $3,000 rental loss from American Samoa property would report a Line 15 exclusion of $47,000.

How Form 4563 affects self-employment tax

The American Samoa income exclusion on Form 4563 does not eliminate self-employment tax obligations – bona fide residents with net self-employment income from American Samoa may still owe self-employment tax on that income.

The Form 4563 exclusion reduces your federal income tax, but self-employment tax is calculated separately:

• SE tax is 15.3% – 12.4% for Social Security and 2.9% for Medicare
• The Social Security portion applies to net SE earnings up to $176,100 (2025)
• An additional 0.9% Medicare tax applies to SE income above $200,000 (2025) for single filers or $250,000 (2025) for joint filers
• The filing threshold is $400 in net SE earnings
• SE tax is calculated on Schedule SE, which is separate from the income exclusion on Form 4563
• IRS Publication 570 covers possession-specific SE tax rules for bona fide residents of US territories

This means a bona fide resident of American Samoa with $80,000 in self-employment income from an American Samoa business can exclude that income from federal income tax on Form 4563 – but still owes SE tax of roughly $11,304 on the same earnings.

Impact of the American Samoa exclusion on tax credits

Claiming the Form 4563 exclusion can affect your eligibility for certain refundable credits, so always calculate your tax liability both with and without the exclusion before filing.

The exclusion interacts with several key credits:

• Child Tax Credit. Bona fide residents of American Samoa generally cannot claim the Additional Child Tax Credit, the refundable portion of the Child Tax Credit, on a US Form 1040. If you qualify, that credit is claimed on the American Samoa territorial return instead. Confirm your specific situation against IRS Publication 570 or with a tax professional.
• Earned Income Tax Credit. EITC eligibility rules for US territory residents differ from mainland rules. Bona fide residents of American Samoa generally cannot claim the EITC on their US federal return.
• Foreign Tax Credit. You cannot claim a Foreign Tax Credit on income you have already excluded on Form 4563. If you pay taxes to American Samoa on excluded income, that tax payment does not generate a US Foreign Tax Credit. Unlike the FEIE, which you elect to claim, the American Samoa exclusion under IRC Section 931 applies automatically once you meet the bona fide residence requirement – there’s no election to give it up in favor of the FTC.

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Filing deadlines and where to file Form 4563

Form 4563 is attached to your Form 1040 and submitted to the same IRS address or e-filed through the same channel as your main return – it is not filed separately.

Key deadlines for tax year 2025:

• April 15, 2026 – standard filing deadline for most US taxpayers
• June 15, 2026 – automatic two-month extension for taxpayers whose tax home and abode are outside the United States and Puerto Rico. American Samoa residents should confirm with Publication 570’s filing-deadline rules for territory residents whether this automatic extension applies to them, since the primary-source language addresses taxpayers “outside the United States and Puerto Rico” without specifically naming American Samoa. Interest on any unpaid tax still runs from April 15, regardless.
• October 15, 2026 – extended deadline if you file Form 4868 before your applicable due date

If you e-file, Form 4563 is transmitted as part of your electronic return. If you file by mail, attach Form 4563 to your paper Form 1040.

Dual-status and part-year resident considerations

A taxpayer who became a bona fide resident of American Samoa partway through 2025 doesn’t automatically qualify for the Form 4563 exclusion for that year under the basic full-year rule, and must file Form 8898 to report the change in residency status.

The bona fide residence requirement covers the entire tax year. If you moved to American Samoa in March 2025, you were not automatically a bona fide resident for all of tax year 2025, so confirm with a tax professional whether a year-of-the-move exception (Treas. Reg. §1.937-1(f)) applies before ruling out Form 4563 for that year.

The same applies if you left American Samoa during the year. A taxpayer who ended bona fide residence in September 2025 should likewise confirm whether the year-of-the-move exception applies rather than assuming the full-year exclusion is unavailable.

Form 8898 must be filed when you begin or end bona fide residence in a US territory. The form is filed separately from your Form 1040 – it is mailed to the IRS in Austin, Texas.

The filing threshold is $75,000 in worldwide gross income. The penalty for not filing is $1,000 unless you show reasonable cause.

How Form 4563 relates to Puerto Rico and other US territories

Residents of Puerto Rico, Guam, or the US Virgin Islands do not use Form 4563 – each territory has distinct IRS rules governing income exclusions and filing obligations.

Form 4563 applies only to American Samoa. The other US territories have their own tax frameworks:

• Puerto Rico – governed by IRC Section 933. Bona fide residents can exclude Puerto Rico-sourced income from US federal tax, but Puerto Rico has its own local income tax system.
• Guam and the US Virgin Islands – operate under mirror tax codes based on the US Internal Revenue Code. Residents file with their territorial tax authorities rather than the IRS.
• Northern Mariana Islands – has its own covenant-based tax arrangement with the United States.

A common misconception is that all US territory residents use the same exclusion form. They do not. Each territory’s tax treatment depends on the specific IRC section that governs it.

Common mistakes to avoid when filing Form 4563

The most costly Form 4563 mistake is excluding income that does not qualify as American Samoa-sourced, which can trigger IRS notices, back taxes, and accuracy-related penalties.

Five errors come up frequently:

1. Claiming the exclusion without meeting the bona fide residence requirement. Under the basic rule, part-year residents don’t qualify, but a narrow year-of-the-move exception (Treas. Reg. §1.937-1(f)) can apply if you meet specific presence and connection tests tied to the years before and after the move. Don’t assume you’re disqualified just because you moved partway through the year without checking whether that exception applies to your situation.
2. Excluding US-sourced income. Remote workers earning a salary from a US-based employer are generally earning US-sourced income, even if they live in American Samoa. That income cannot be excluded on Form 4563.
3. Failing to allocate deductions against excluded income. Deductions attributable to your American Samoa-sourced income must be allocated to that income. You cannot exclude the income and still claim the full deduction against your remaining US taxable income.
4. Filing both Form 4563 and Form 2555 for the same income. These are separate exclusions for separate situations. You cannot claim both for the same income.
5. Omitting Form 8898 when residency status changed. If you began or ended bona fide residence in American Samoa and your worldwide gross income exceeded $75,000, failing to file Form 8898 can result in a $1,000 penalty.

What happens if you claim the exclusion incorrectly?

If the IRS determines that you did not qualify as a bona fide resident of American Samoa, it can disallow your exclusion entirely.

If the IRS determines that you did not qualify as a bona fide resident of American Samoa, it can assess tax on the full amount you excluded plus interest from the original due date.

The consequences include:

• Additional income tax on the full excluded amount, calculated as if you never filed Form 4563
• Interest running from the original filing deadline – not from the date the IRS catches the error
• A potential accuracy-related penalty of 20% on the underpayment if the IRS finds your claim was not supported by a reasonable basis

You can correct an error before the IRS identifies it by filing an amended return using Form 1040-X. Self-correcting is generally treated more favorably than waiting for an IRS notice.

If you are claiming a refund, the IRS must receive the amended return within the limitations period or the refund is forfeited.

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Form 4563 and the Streamlined Filing Procedures

The Streamlined Filing Procedures can be a valuable path for American Samoa residents who have non-willfully failed to report income or claim the Form 4563 exclusion in prior years.

If you should have filed Form 4563 in previous years but did not, or if you failed to report American Samoa income on your US return, you may be eligible for the IRS Streamlined Filing Compliance Procedures.

The Streamlined Procedures allow qualifying taxpayers to come into compliance with reduced or no penalties.

To be eligible, you must certify that your failure to file correctly was non-willful – meaning it resulted from negligence, inadvertence, or a good-faith misunderstanding of the filing requirements.

The program requires you to file three years of amended or delinquent income tax returns and six years of FBARs.

Whether a bona fide resident of American Samoa satisfies the SFOP non-residency test (as opposed to falling under SDOP) is a genuinely unsettled question. Some practitioners read the IRC §911 definition of “United States” incorporated into the streamlined rules as including US territories, which would point toward SDOP rather than SFOP. Confirm which track applies to your specific facts with a tax professional before certifying on Form 14653 or Form 14654.

A taxpayer who does not meet that test would instead use Form 14654 (Streamlined Domestic Offshore Procedures), which carries a 5% offshore penalty. Confirm which track applies to your specific facts before filing.

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Related IRS forms for American Samoa residents

Form 8898 is the companion form most American Samoa residents will need alongside Form 4563 whenever their residency status changes.

• Form 8898 – Statement for Individuals Who Begin or End Bona Fide Residence in a US Territory. Required when you become or stop being a bona fide resident of American Samoa, if your worldwide gross income exceeds $75,000. Filed separately from your Form 1040.
• Form 2555 – Foreign Earned Income Exclusion. Not applicable to American Samoa-sourced income, but often confused with Form 4563. Form 2555 covers income earned in foreign countries, not US territories.
• Schedule SE – Self-Employment Tax. Used to calculate SE tax on net self-employment earnings of $400 or more. The Form 4563 exclusion does not eliminate SE tax.
• Form 1040-X – Amended US Individual Income Tax Return. Used to correct a previously filed return or to claim a missed Form 4563 exclusion.
• Form 4868 – Application for Automatic Extension of Time to File. Extends your filing deadline to October 15, 2026 for tax year 2025.

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