taxmap/pubs/p570-009.htm#en_us_publink100097524The Commonwealth of Puerto Rico has its own separate and independent tax system. Although it is modeled after the U.S. system, there are differences in law and tax rates.
taxmap/pubs/p570-009.htm#en_us_publink100097525 | Requests for information about the filing of Puerto Rican tax returns should be addressed to:
Departamento de Hacienda
Negociado de Asistencia Contributiva
P.O. Box 9024140
San Juan, Puerto Rico 00902-4140
|
 | The phone number is 787-721-2020, extension 3611. You can also call 1-800-981-9236 toll free from within Puerto Rico but outside the San Juan metropolitan area.
|
To obtain Puerto Rican tax forms, contact the Forms and Publications Division Office at the above address or call 787-721-2020, extensions 2645 or 2646.
taxmap/pubs/p570-009.htm#en_us_publink100097529The addresses and phone numbers listed above are subject to change.
taxmap/pubs/p570-009.htm#en_us_publink100097530Generally, you will file returns with both Puerto Rico and the United States. The income reported on each return depends on your residency status in Puerto Rico. To determine if you are a bona fide resident of Puerto Rico, see the information in chapter 1.
taxmap/pubs/p570-009.htm#en_us_publink100097531Bona fide residents of Puerto Rico will generally pay tax to Puerto Rico on their worldwide income.
taxmap/pubs/p570-009.htm#en_us_publink100097532If you are a U.S. citizen or resident alien and also a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns.
- A Puerto Rican tax return reporting income from worldwide sources. If you report U.S. source income on your Puerto Rican tax return, you can claim a credit against your Puerto Rican tax, up to the amount allowable, for income taxes paid to the United States.
- A U.S. tax return reporting income from worldwide sources, but excluding Puerto Rican source income. However, see U.S. Government employees under Special Rules for Puerto Rico, later, for an exception. If you are excluding Puerto Rican income on your U.S. tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. For more information, see Special Rules for Completing Your U.S. Tax Return in chapter 4.
If all of your income is from Puerto Rican sources, you are not required to file a U.S. tax return. However, if you have self-employment income, see Self-employment tax, on this page.
If you are a U.S. citizen, you may also qualify under these rules if you have been a bona fide resident of Puerto Rico for at least 2 years before moving from Puerto Rico. In this case, you can exclude your income derived from sources within Puerto Rico (but not wages and salaries received as an employee of the U.S. Government or its agencies) that you earned before the date you changed your residence. For more information, see Puerto Rico under Special Rules in the Year of a Move in chapter 1.
taxmap/pubs/p570-009.htm#en_us_publink100097534If you are a bona fide resident of Puerto Rico during the entire tax year, but a nonresident alien of the United States, you generally must file the following returns.
- A Puerto Rican tax return reporting income from worldwide sources. If you report U.S. source income on your Puerto Rican tax return, you can claim a credit against your Puerto Rican tax, up to the amount allowable, for income taxes paid to the United States.
- A U.S. tax return (Form 1040) reporting income from worldwide sources, but excluding Puerto Rican source income (other than amounts for services performed as an employee of the United States or any of its agencies).
For tax purposes other than reporting income, however, you will be treated as a nonresident alien individual. For example, you are not allowed the standard deduction, you cannot file a joint return, and you are not allowed a deduction for a dependent unless that person is a citizen or national of the United States. There are also limitations on what deductions and credits are allowed. See Publication 519 for more information.
An individual who is not a bona fide resident of Puerto Rico for the tax year generally files tax returns with both Puerto Rico and the United States.
taxmap/pubs/p570-009.htm#en_us_publink100097537If you are a U.S. citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns.
- A Puerto Rican tax return reporting only your income from Puerto Rican sources. Wages for services performed in Puerto Rico, whether for a private employer, the U.S. Government, or otherwise, is income from Puerto Rican sources.
- A U.S. tax return reporting income from worldwide sources. Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rican income that is not exempt from U.S. taxes (see chapter 4 for more information).
If you are a nonresident alien of the United States who does not qualify as a bona fide resident of Puerto Rico for the entire tax year, you generally must file the following returns.
- A Puerto Rican tax return reporting only your income from Puerto Rican sources. Wages for services performed in Puerto Rico, whether for a private employer, the U.S. Government, or otherwise, is income from Puerto Rican sources.
- A U.S. tax return (Form 1040NR) according to the rules for a nonresident alien. See the instructions for Form 1040NR.
Use the addresses listed below to file your U.S. and Puerto Rico income tax returns.
Send your U.S. tax return and all attachments to:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
If you request a refund, send your Puerto Rican tax return and all attachments to:
Departamento de Hacienda
P.O. Box 50072
San Juan, PR 00902-6272
Send all other Puerto Rican tax returns, with all attachments, to:
Departamento de Hacienda
P.O. Box 9022501
San Juan, PR 00902-2501
taxmap/pubs/p570-009.htm#en_us_publink100097540In addition to the above general rules for filing U.S. and Puerto Rican tax returns, there are some special rules that apply to certain individuals and types of income.
taxmap/pubs/p570-009.htm#en_us_publink100097541Wages and cost-of-living allowances paid by the U.S. Government (or one of its agencies) for working in Puerto Rico are subject to Puerto Rican tax. However, the cost-of-living allowances are excluded from Puerto Rican gross income up to the amount exempt from U.S. tax. In order to claim this exclusion, you must:
- Include with your Puerto Rican tax return evidence to show the amount received during the year, and
- Be in full compliance with your Puerto Rican tax responsibilities.
These wages are also subject to U.S. tax, but the cost-of-living allowances are excludable. A foreign tax credit is available in order to avoid double taxation.
taxmap/pubs/p570-009.htm#en_us_publink100097542If you are a U.S. citizen and bona fide resident of Puerto Rico and you have income from sources outside both Puerto Rico and the United States, that income is treated as foreign source income under both tax systems. In addition to your Puerto Rican and U.S. tax returns, you may also have to file a return with the country or possession from which your outside income was derived. To avoid double taxation, a foreign tax credit is generally available for either the U.S. or Puerto Rican return.
taxmap/pubs/p570-009.htm#en_us_publink100097543Thomas Red is a bona fide resident of Puerto Rico and a U.S. citizen. He traveled to the Dominican Republic and worked in the construction industry for 1 month. His wages were $20,000. Because the wages were earned outside Puerto Rico and outside the United States, Thomas must file a tax return with Puerto Rico and the United States. He may also have to file a tax return with the Dominican Republic.
taxmap/pubs/p570-009.htm#en_us_publink100097544Generally, expenses of a move to Puerto Rico are directly attributable to wages, salaries, and other earned income from Puerto Rico. Likewise, the expenses of a move back to the United States are generally attributable to U.S. earned income.
If your move was to Puerto Rico, report your deduction for moving expenses as follows.
- If you are a bona fide resident in the tax year of your move, enter your deductible expenses on your Puerto Rican tax return.
- If you are not a bona fide resident, enter your deductible expenses on both your Puerto Rican and U.S. tax returns. Also, for purposes of a tax credit against your U.S. tax liability, reduce your Puerto Rican "general category income" on Form 1116, line 1a, by entering the deductible moving expenses on line 2.
If your move was to the United States, complete Form 3903, Moving Expenses, and enter the deductible amount on Form 1040, line 26.
taxmap/pubs/p570-009.htm#en_us_publink100097545If you are not required to file a U.S. income tax return, this credit is available only if you meet all three of the following conditions.
- You were a bona fide resident of Puerto Rico during the entire tax year.
- Social security and Medicare taxes were withheld from your wages or you paid self-employment tax.
- You had three or more qualifying children. (For the definition of a qualifying child, see the instructions for Form 1040-PR or Form 1040-SS.)
If your income exceeds certain levels, you may be disqualified from receiving this credit. Use Form 1040-PR or Form 1040-SS to claim the additional child tax credit.
 | Advice about possible tax benefits under the Puerto Rican investment incentive programs is available from the Puerto Rican tax authorities. |
taxmap/pubs/p570-009.htm#en_us_publink100097547If you have no U.S. filing requirement but have income that is effectively connected with a trade or business in Puerto Rico, you must file Form 1040-SS or Form 1040-PR with the United States to report your self-employment income and, if necessary, pay self-employment tax.
taxmap/pubs/p570-009.htm#en_us_publink100097548A mutual agreement procedure exists to settle cases of double taxation between the United States and the Commonwealth of Puerto Rico. See Double Taxation in chapter 4.
Previous Page: Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - Filing Information for Individuals in Certain U.S. Possessions
Next Page: Publication 570 - Tax Guide for Individuals With Income from U.S. Possessions - The Commonwealth of the Northern Mariana Islands
