Living in Puerto Rico with US income

Forum|Forum|5 years ago
April 25, 2021
10 replies
38 views

I have new client that has retirement from US job and social security, but has been living in Puerto Rico for the past couple of years. Has any one heard of a way to get a credit on US tax return because they are living in PR? Please and Thank you!

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sjrcpa

Level 15

Might they have to file the Puerto Rico version of the 1040 and not the regular 1040?

The more I know the more I don’t know.

R

RealMcCoyAuthor

Level 3

They don't have income in PR. What I found, that would omit them from having to file to claim worldwide income. Because its US generated (soc security and pension from US based company) I keep circling back to them having to file the US return. But don't see anything to give them any type of credit. And they have a home in PR, and a home here in there, but the daughter lives in it here and they don't charge her. Adding more complexity to it. And they had federal taxes taken out of pension - leading me back to regular 1040.

sjrcpa

Level 15

What kind of credit are you looking for then?

The more I know the more I don’t know.

BobKamman

Level 15

You do know, of course, that Puerto Rico is part of the United States?

R

RealMcCoyAuthor

Level 3

Yes I do. They have different tax implications as they have an independent tax system.

BobKamman

Level 15

They do not have an independent tax system. They have a "mirror" system that allows them to collect some federal taxes that otherwise be paid to IRS -- but not from retirees.

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