Puerto Rico Taxes

Generally speaking, resident foreigners and US citizens who reside in Puerto Rico during the current tax year which are from 1st January to 31st December are liable to file a US federal income tax return if they earn income from outside Puerto Rico or if they are US government employees.

Usually, bona fide residents of Puerto Rico do not file a tax return. Puerto Ricans earning from outside the state and all members of the US armed forces are however required to file a return with the government of Puerto Rico or with the US federal government.

Puerto Rico Deductions and Credits

  • Any US income tax return will not be eligible for deductions and credits which apply to exempt Puerto Rican income.
  • For the above reason, the Puerto Rican income should be separated from income from other sources for tax purposes.
  • Detailed information regarding the aspect of taxes and credits can be found in Publication 1321, Special Instructions for Bona Fide Residents of Puerto Rico who must file a U.S. Individual Income Tax Return.

Puerto Rico Earned Income Credit

  • Even if an individual maintains a household in Puerto Rico and that residence is the principal home and also the home of that person’s child, an earned income credit cannot be claimed on a US tax return.
  • The above mentioned credit is only possible if the person maintains the household in the US or serves with the US armed forces.

Puerto Rico Income Tax

  • Any income received from within Puerto Rica during the residence of a person in Puerto Rico is exempt from US federal tax.
  • Income from the time the person moved from Puerto Rico until 2 years hence is included in the category of income tax exemption.
  • Income which a person receives as a result of services rendered in Puerto Rico in the capacity of being a US employee is not exempted from US income tax.

Envíe su Planilla a la Siguiente Dirección:

Planillas con Reintegro: 
Departamento de Hacienda
P.O. Box 50072
San Juan, P.R. 00902-6272
Planillas con Pago y Otras:
Departamento de Hacienda
P.O. Box 9022501
San Juan, P.R. 00902-2501