Filing Requirements for Puerto Rican Residents with U.S. Taxable Income
If you are a bona fide resident of Puerto Rico, you typically do not need to file a U.S. federal income tax return if your only income is from Puerto Rican sources. However, if you earn income from sources outside of Puerto Rico, including U.S. income, you are required to file a U.S. federal tax return if your income exceeds the U.S. filing threshold.
✅ Key Points:
Puerto Rican source income is generally excluded from U.S. taxation.
U.S. source income is subject to U.S. tax and must be reported.
Bona fide residents with a U.S. filing obligation should not include Puerto Rican source income on their U.S. return.
For more details on bona fide residency rules and how to determine whether you need to file, refer to Publication 570 and Publication 1321.
Special Rules for U.S. Government Employees in Puerto Rico
If you are a bona fide resident of Puerto Rico and an employee of the U.S. government (including members of the U.S. Armed Forces), you must:
File a U.S. federal income tax return.
Report all income earned from services performed for the U.S. government, including services performed in Puerto Rico.
U.S. Citizens and Resident Aliens with Puerto Rican Ties
If you are a U.S. citizen or resident alien but not a bona fide resident of Puerto Rico, you are required to:
Report all income from worldwide sources on your U.S. tax return.
If you move from Puerto Rico but were a bona fide resident for the two years prior, you can exclude Puerto Rican source income earned during the portion of the year you were still a bona fide resident.
Self-Employment Income from Puerto Rico
Regardless of whether you are required to file a U.S. income tax return, you may still have to report self-employment income. This applies if you earn income from:
A trade or business in Puerto Rico.
Self-employment income outside Puerto Rico.
✅ Filing Requirements:
Residents of Puerto Rico with self-employment income must file:
Form 1040-SS or
Form 1040-SS (SP) (Spanish version)
Use these forms to:
Report self-employment income.
Pay self-employment tax, if applicable.
For detailed reporting requirements, consult the Instructions for Form 1040-SS or Form 1040-SS (SP).
Child Tax Credit (CTC) for Puerto Rico Residents
Puerto Rico residents must file a U.S. federal tax return to claim the Child Tax Credit (CTC), even if they:
Have no filing requirement.
Earn little or no income from employment or other sources.
✅ Filing Details:
Puerto Rico residents can file:
Form 1040-SS (U.S. Self-Employment Tax Return)
Form 1040 (U.S. Individual Income Tax Return)
Form 1040-SR (U.S. Tax Return for Seniors)
The 2021 CTC can still be claimed by filing a 2021 tax return until April 15, 2025, without any penalties, even if you do not owe taxes.
For more information on claiming the CTC, refer to Topic No. 902.
✅ Key Takeaways:
No U.S. Tax Return Required:
Bona fide Puerto Rican residents with only Puerto Rican source income generally do not need to file a U.S. federal tax return.
Filing Required:
If you earn U.S. or foreign income, you must file a U.S. return if your income exceeds the U.S. filing threshold.
U.S. government employees in Puerto Rico must report all income on their U.S. return.
Self-Employment Income:
Puerto Rican residents with self-employment income must file Form 1040-SS or 1040-SS (SP) to report it.
Child Tax Credit (CTC):
Puerto Rican residents must file a U.S. return to claim the CTC, even without a filing obligation.