Water Island may be a good choice. A safe and secluded island just 8 minute people ferry ride that has regular and frequent schedules to/from St. Thomas. https://www.vinow.com/general_usvi/interisland_ferry/#Water Island Ferry: Crown Bay to Phillip's Landing
Water Island is close enough to enjoy all that St. Thomas, St. John and other islands have to offer yet provides you a "home base" that's quiet and away from the hustle and bustle.

There's quite a bit to do on Water Island, lovely Honeymoon, Limestone and Sprat Bay Beach. Heidi Honeymoon Grill serves lunch each day on Honeymoon Beach from 11-3. Joe's Beach Bar also on Honeymoon beach serves blender drinks and hosts a pot luck music jam every Sunday night. Every Monday night there's a current moving playing on the beach - Heidi serves popcorn, hotdogs, drinks. You can sit in the chairs provided or sit in your golf cart or vehicle that most rental villas provide for transportation on Water Island. For activities on Water Island, click on the Water Island Civic Association web site http://www.waterislandwica.com/IslandLife

Whereever you choose to stay, relax and enjoy the caribbean and the time with your family!

I strongly recommend that you stay on the East End, close to Red Hook where you can catch ferries to St John and other islands.

You will eventually end up going to STJ more than once. Just too many beautiful beaches to enjoy in 1 day. For Trunk Bay, i would suggest that you get there early, like 9AM. Parking is limited and the beach tends to get crowded later in the day.

If you still have time, there are plenty of day charters to the British VI: Virgin Gorda, Tortola, Jost Van Dyke. Remember that you will need passports. If you enjoy snorkeling, find a charter that would take you to the Indians.

Find your rentals thru vrbo.com. Some nice area to stay: Sapphire, Secret Harbor, Bolongo Bays.
Reserve your rental car (4WD a must) early, make sure agency would let you take it to STJ.

Have fun.

You might also consider St. Croix. Larger than the other 2 with the same population as St. Thomas. Great diving and snorkeling. Many other things for families to do. In addition to this message board, you might also take a look at - http://gotostcroix.com/ - for ideas.

Thank you for all these recommendations. Our dates of travel are Dec 26-31 due to college/work schedules. One additonal question I have is in dealing with food allergies. Do the islands have emergency medical care in the event of an accident? I think that will play a part in the location decision. (peanut & soy allergies). Thank you!

I'd say to check out St Croix. Very laid back and quiet, and economical. Check out listings on VRBO. Cane Bay is a good spot for a variety of tastes. St Croix does have an ER, but, I strongly recommend you see your doctor, and find out if you can get an Epipen for an emergency.

No crowds, great beach.....outstanding snorkeling.........Cane Bay, north shore St Croix. Been there twice and will return. We stay at the Carambola resort, which is about 5 minutes away. DEFINITELY bring your own medications. Don't rely on an ambulance, ER or the hospital. Their response time just doesn't work for the north shore.

go to sapphire beach on stt. you may have a problem with a room. go to vrbo and work your way down to sapphire.

billd

Just a couple of comments on what has been posted thus far. If you stay on STT you don't need 4WD. If you stay on STJ you do. If you stay on STT and take a day trip on the car barge to STJ you can manage very well without 4WD.

Wyndham Sugar Bay Resort on STT has now gone completely all-inclusive (it's a long story) and, as many locals foresaw, are having a tough time going that route. Surprised that a poster didn't find good snorkeling at Sapphire as, along with Secret Harbour, the snorkeling is very good there. At Bolongo Bay there is next to no snorkeling.

As far as emergency medical care, the Red Hook Family Medical Group operates 24/7 out of STT Red Hook (East end), STT Yacht Haven Grande (adjacent to the WICO cruise ship facility at Havensight), and on STJ in Cruz Bay. They're highly reputable.

Whatever you decide on (and as billD noted, www.vrbo.com is a good place to start once you've decided which island best suits you) do figure a rental car into your budget. Taxis on all islands charge per person so even a minimal trip will cost you $5pp each way. In other words if the five of you decide to take a taxi to the grocery store just a mile away you're adding up a $50 round trip fare not including tip and any baggage fees.

Internet access is available pretty much everywhere so no worries there.

Be forewarned that the last week of December is prime time so best you quickly decide which island suits you (utilize all the general information right here on this site for an overview) and then see what's available in your price range. Good luck and I've no doubt that you'll enjoy a wonderful time whatever you decide. Cheers!