Income Reporting from U.S. Possessions

If you are a U.S. citizen or resident alien and Not a bona fide resident of Puerto Rico during the entire year, you generally must file:
A Puerto Rican tax return reporting only income from Puerto Rican sources. Wages for services performed in Puerto Rico, whether for the U.S. Government, a private employer or otherwise, is 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.

If you are a nonresident alien of the U.S. who does not qualify as a bona fide resident of Puerto Rico for the entire year, you must file:
A Puerto Rican tax return reporting only your income from Puerto Rican sources. Wages for services performed in Puerto Rico, whether from the U.S. government, private employer, or otherwise, is income from Puerto Rican sources.
A U.S. tax return (Form 1040NR) according to the rules for a nonresident alien.

If 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:,br> 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. 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.
If all your income is from Puerto Rican sources, you are not required to file a U.S. tax return.

If you are a bona fide resident of Puerto Rico during the entire tax year and a nonresident alien of the U.S., you generally must file:,br> 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 U.S. or any of its agencies.
For tax purposes other than reporting income, you will be treated as a nonresident alien individual with its associated limitations.

Mail your U.S. tax return and all attachments to:
Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215

Mail your Puerto Rican tax return and all attachments to If you request a refund
Departamento de Hacienda P.O. Box 50072 San Juan, PR 00902-6272
Mail all other Puerto Rican tax returns and attachments to Departamento de Hacienda P.O. Box 9022501 San Juan, PR 00902-2501

If you are a U.S. citizen or resident alien you will satisfy the presence test for the entire year if you meet one of the following conditions.
You were present in Puerto Rico for at least 183 days during the tax year.
You were present in Puerto Rico for at least 549 days during the 3 year period that includes the current year and the 2 immediately preceding tax years. During each year of the 3 year period you must be present in Puerto Rico for at least 60 days
You were present in the United States for no more than 90 days during the year. You had earned income in the U.S. of no more than $3,000 and were present for more days in Puerto Rico than in the U.S. during the year.
You had no significant connection to the United States during the tax year.

Phone number for information outside of Puerto Rico is 787-721-2020 Extension 3611
Within Puerto Rico call 1-800 981-9236
The Puerto Rican website is www.hacienda.gobierno.pr or email questions to infoserv@hacienda.gobierno.pr

If you have no U.S. filing requirements 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.

Wages 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. The cost-of-living allowances are excluded from Puerto Rican Gross income up to the exempt from U.S. tax.
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 ovoid double taxation.