Get Irs Publication 1321 2022-2024

The U.S. tax code (Section 933) allows a bona fide resident of Puerto Rico to exclude Puerto Rico-source income from his or her U.S. gross income for U.S. tax purposes.

If you are age 65 or older, your standard deduction increases by $1,700 if you file as single or head of household. If you are legally blind, your standard deduction increases by $1,700 as well. If you are married filing jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,350.

Located in the Caribbean Sea, the U.S. territory of Puerto Rico is a spectacular tax haven for businesses and individuals. Much of this is due to Act 60, a piece of legislation passed to boost economic development on the island.

Therefore, if an individual relocates to Puerto Rico, the move does not result in an expatriation tax. Further, U.S. citizens and resident aliens living in Puerto Rico are generally subject to U.S. tax on worldwide income.

While the Commonwealth government has its own tax laws, Puerto Rico residents are also required to pay US federal taxes, but most residents do not have to pay the federal personal income tax.

Earned income tax credit 2023 The earned income tax credit is adjusted to account for inflation each year. For the 2023 tax year (taxes filed in 2024), the earned income tax credit will run from $600 to $7,430, depending on filing status and number of children.

Puerto Rico holds a unique position as an unincorporated U.S. territory. Under Internal Revenue Code (IRC) §933, Puerto Rico source income is excluded from U.S. federal tax.

While the Commonwealth government has its own tax laws, Puerto Rico residents are also required to pay US federal taxes, but most residents do not have to pay the federal personal income tax.