Get PR 480.2 2016

Form 480.6A is issued by the government of Puerto Rico for the filing of informative returns on income not subject to withholding.

If you are a nonresident alien of the Unites States but a bona fide Puerto Rico resident, you must file a Puerto Rico tax return, reporting worldwide income but excluding U.S. income. In addition, you must file a U.S. tax return, namely Form 1040, reporting worldwide income, with the exclusion of Puerto Rico income.

If you are a U.S. citizen or resident alien but not a bona fide resident of Puerto Rico during the entire tax year, you generally must file the following returns. A Puerto Rico tax return reporting only your income from Puerto Rico sources.

A Puerto Rico tax return reporting only your income from Puerto Rico sources. Wages for services performed in Puerto Rico, whether for a private employer, the U.S. government, or otherwise, is income from Puerto Rico sources. A U.S. tax return (Form 1040NR) according to the rules for a nonresident alien.

Personal Income Tax Rate in Puerto Rico is expected to be 33.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.

To request a Puerto Rico extension, file Form AS 2644 (Request for Extension of Time to File the Income Tax Return) by the original due date of your return. Form AS 2644 will give you 3 extra months to file your return, moving the filing deadline to July 15 (for calendar year taxpayers).

Unlike the US, Puerto Rico does not tax social security pension income or unemployment. Puerto Rico residents must still pay the US FICA tax on self-employment income.

However, Puerto Rico is not a US state. Because of this, only Puerto Rican residents who are government employees, and those with income sources outside of the territory, pay federal income tax. All other employers and employees pay no federal income taxes.

U.S. citizens who have lived all year on the island are exempt from filing taxes to the federal government of the United States as long as all of your income was from Puerto Rican sources only.

Do residents of Puerto Rico pay any federal taxes? Yes, Puerto Ricans do pay some federal income taxes in addition to the local income tax they pay in Puerto Rico. They pay the federal tax that funds Social Security and Medicare (the Federal Insurance Contributions Act (FICA) tax).

Unlike the US, Puerto Rico does not tax social security pension income or unemployment. Puerto Rico residents must still pay the US FICA tax on self-employment income.

Such individuals must file Form 1040-SS (PDF) or Form 1040-PR (PDF) with the United States to report self-employment income and if necessary, pay self-employment tax.

For foreign tax credit purposes, all qualified taxes paid to U.S. possessions are considered foreign taxes. For this purpose, U.S. possessions include Puerto Rico and American Samoa.

The Commonwealth of Puerto Rico is a territory of the United States and Puerto Ricans are US citizens. However, Puerto Rico is not a US state. Because of this, only Puerto Rican residents who are government employees, and those with income sources outside of the territory, pay federal income tax.

While in an international sense Porto Rico (sic) was not a foreign country, since it was subject to the sovereignty of and was owned by the United States, it was foreign to the United States in a domestic sense, because the island has not been incorporated into the United States, but was merely appurtenant thereto as a ...