|Tax Topic #901
||2008 Tax Year
Topic 901 - Is a Person With Income From Puerto Rican Sources
Required to File a U.S. Federal Income Tax Return?
In general, United States citizens and resident aliens who are bona fide
residents of Puerto Rico during the entire tax year (January 1 to December
31) do not report income received from sources within Puerto Rico on their
U.S. income tax return. However, they should report all income received from
sources outside Puerto Rico on their U.S. income tax return. Residents of
Puerto Rico who are employed by the government of the United States or who
are members of the armed forces of the United States should report all income
received for their services to the government of the United States on their
U. S. income tax return. United States citizens or resident aliens who are
not bona fide residents of Puerto Rico during the entire tax year are required
to report all income from whatever source derived on their U.S. income tax
return. A U.S. citizen who changes residence from Puerto Rico to the United
States and who was a bona fide resident of Puerto Rico at least two years
before changing residence can exclude from U.S. taxable income the Puerto
Rican source income received while residing in Puerto Rico during the taxable
year of such change of residence.
If you are a bona fide resident of Puerto Rico and qualify to exclude your
possession income on your U.S. tax return, you must determine your adjusted
filing requirement based on the filing thresholds shown in the tax return
instructions. For more information about how to determine the amount of income
that requires filing a U.S. income tax return, refer to Publication 570 and Publication 1321 (PDF).
If you have no U.S. filing requirement but have income that is effectively
connected with a trade or business, you must file Form 1040-SS (PDF) or Form 1040-PR (PDF) with the
United States to report your self-employment income and, if necessary, pay
self-employment tax. For more information on self-employment reporting requirements,
see the instructions to these forms.
Page Last Reviewed or Updated: December 22, 2008
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