Nonresident Tax Issues

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.

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.

Generally, you are a bona fide resident of Puerto Rico if during the year you meet the presence test, do not have a tax home outside of Puerto Rico and do not have a closer connection to the U.S. or to a foreign country than to Puerto Rico.

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 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.

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 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 an alien (not a U.S. citizen), you are considered a nonresident alien unless you meet one of the two tests described for a Resident Alien. You are a resident alien of the United States for tax purposes if you meet either the Green Card Test or the Substantial Presence Test for calendar year 2013. Even if you do not meet either of these tests, you may be able to choose to be treated as a U.S. resident for part of the year. You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. This is known as the “green card” test. You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card.” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. You will be considered a U.S. resident for tax purposes if you meet the Substantial Presence Test for calendar year 2013. To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011.

A resident Alien is taxed on Worldwide income from all sources just like a US citizen. The exclusion for foreign earned income may be claimed. A resident alien may claim a foreign tax credit. A resident alien pension from a foreign government is subject to US tax. A resident alien working in the US for a foreign government is not taxed on the wages if the foreign government allows a similar exemption.