03-06-2021, 03:52 PM
(03-06-2021, 03:39 PM)hollodero Wrote: From wikipedia:
Contrary to popular belief,[5] all Puerto Rico residents pay federal taxes, just as mainland Americans do. Specifically, the following federal taxes are paid by all residents of Puerto Rico: Customs taxes,[6][7][c] Federal commodity taxes,[9] and all payroll taxes, including: (a) Social Security taxes,[10] (b) Medicare taxes,[11] and Unemployment taxes: "Residents of Puerto Rico...are obliged to pay exactly the same Social Security and Medicare taxes that fellow U.S. citizens in the 50 states and the District must pay. For most of [Puerto Rico]'s wage-earners, moreover, those outlays far exceed the federal income-tax liabilities they would bear if Puerto Rico were a state."[12]
Payment of Federal income taxes[edit]
Contrary to common misconception,[13] residents of Puerto Rico do pay federal income taxes.
[...It goes on to state that quite some Puerto Ricans don't pay income taxes due to living beyond the federal threshold]
--- So I guess you're incorrect on that.
https://www.hrblock.com/tax-center/irs/tax-law-and-policy/do-puerto-ricans-pay-us-taxes/
Right from the IRS...
https://www.irs.gov/taxtopics/tc901
If you're a bona fide resident of Puerto Rico during the entire tax year, you generally aren't required to file a U.S. federal income tax return if your only income is from sources within Puerto Rico. However, if you also have income from sources outside of Puerto Rico, including from U.S. sources, you're required to file a U.S. federal income tax return if such amount is above the U.S. filing threshold. Nevertheless, a bona fide resident of Puerto Rico with a U.S. filing obligation, generally won't report Puerto Rican source income on a U.S. income tax return.
If you're a bona fide resident of Puerto Rico and can exclude your Puerto Rican source income on your U.S. income tax return, you must determine your return filing requirement based on the filing thresholds shown in the individual tax return instructions. For more information on who is considered a bona fide resident of Puerto Rico and how to determine the amount of income that requires filing a U.S. income tax return, refer to Publication 570 and Publication 1321 PDF.
However, if you're a bona fide resident of Puerto Rico and a U.S. government employee, you must file a U.S. income tax return reporting all income received for performing services for the U.S. government, including services performed in Puerto Rico as a U.S. government employee. If you're a member of the U.S. Armed Forces or a civilian spouse of an active duty member of the U.S. Armed Forces, special income tax filing rules may apply to you. For more information, please refer to Publication 570 and Notice 2012-41.
U.S. citizens and resident aliens who aren't bona fide residents of Puerto Rico during the entire tax year are required to report all income from worldwide sources on their U.S. income tax return. However, a U.S. citizen who changes residence from Puerto Rico, and who was a bona fide resident of Puerto Rico for the two years before changing residency, can exclude from his or her U.S. income tax return the Puerto Rican source income that is attributable to the part of the year he or she was a bona fide resident of Puerto Rico.
Regardless of whether an individual is or isn't required to file a U.S. income tax return, the individual may have an obligation to file a return with the United States reporting self-employment income derived from a trade or business in Puerto Rico and/or elsewhere. Residents of Puerto Rico who aren't required to file a U.S. income tax return must file
Note how my previous post started with and prefaced my statement with "most".
