Bona fide residents of Puerto Rico generally don’t have to file a U.S. federal return if all their income is from Puerto Rico. A federal return is required only when they receive income from outside Puerto Rico that exceeds the usual IRS filing thresholds, and Puerto Rico–source income is typically excluded from that return. U.S. government employees, members of the Armed Forces, and certain spouses have additional rules. For details on residency and income sourcing, see IRS Topic 901, Publication 570, Publication 1321, and Notice 2012-41.
To enter the amount of income from Puerto Rico you are eligible to exclude, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Resources.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Under My Return, click Federal Search.
Click the Other Income drop-down, then click Puerto Rico income exclusion.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Other Income drop-down, then click Puerto Rico income exclusion.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Other Income drop-down, then click Puerto Rico income exclusion.
Complete the rest of the interview process.
If you have no U.S. filing requirement 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. For more information on self-employment reporting requirements, see the instructions to these forms. The TaxAct program does not support Form 1040-PR.
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