pub 1321 is for
Bona Fide Residents Of Puerto Rico Who Must File A
U.S. Individual Income Tax Return (Form 1040)
If you are a bona fide resident of Puerto Rico who will file a U.S. Federal Income Tax Return, Form 1040,
and claim an exclusion for income earned in Puerto Rico, you will have to make certain adjustments on your
return. These special instructions explain the adjustments, and how to make them on your return.
Bona Fide Residents of Puerto Rico: Generally, you are a bona fide resident of Puerto Rico if during the
tax year, you:
• Meet the presence test
• Do not have a tax home outside Puerto Rico, and
• Do not have a closer connection to the United States or to a foreign country than to Puerto Rico.
Publication 570 discusses these requirements and provides information on the special rules that apply in
the year you are moving to or from Puerto Rico.
Who Must File
In general, section 933 of the U.S. Internal Revenue Code requires that U.S. citizens who are bona fide
residents of Puerto Rico during the entire taxable year, but who receive income from sources outside Puerto
Rico and/or receive income as a civilian or military employee of the U.S. Government in Puerto Rico, must
file a U.S. Federal income tax return. The income you receive from Puerto Rican sources is not subject to
U.S. income tax. Because some of the income is exempt (under Code section 933) a part of the itemized
deductions or a part of the standard deduction amount on your U.S. return must be allocated to that exempt
income. This computation must be made before you can determine if you must file a U.S. tax return,
because the minimum income level at which you must file a return is based on the standard deduction for
your particular filing status.
best would be to contact TT support
