Husband is working in Puerto Rico for his US based utility company. Will he have to pay Puerto Rico and North Carolina taxes on his earnings?

[CarolynM · Accepted solution]

Only North Carolina.  He is not establishing residence in Puerto Rico, and therefore, does not owe taxes. 

Although Puerto Rico is a US Territory, its tax laws are different than US states. They do not have the common requirement that non-residents pay on income earned within the state.

For more information, follow this link: 

Department of Treasury of Puerto Rico

[savila89]

Hi Carolyn, maybe you can help me with this question. I work full-time in NJ and part-time in Puerto Rico. Although I knew I had to do my taxes I completely thought I was to file my taxes separately. I guess not? Anyways, I filed my NJ federal and state taxes. I recieved a refund for my federal and state is pending. Now, what do I do with my Puerto Rico taxes? Should I amend my taxes and add my PR Taxes? I know I will owe since PR do not pay federal taxes. Also, how I file for state? Sorry for so many questions but I want to do things right and not owe the IRS.Thank you.

[savila89]

Hi Carolyn, maybe you can help me with this question. I work full-time in NJ and part-time in Puerto Rico. Although I knew I had to do my taxes I completely thought I was to file my taxes separately. I guess not? Anyways, I filed my NJ federal and state taxes. I recieved a refund for my federal and state is pending. Now, what do I do with my Puerto Rico taxes? Should I amend my taxes and add my PR Taxes? I know I will owe since PR do not pay federal taxes. Also, how I file for state? Sorry for so many questions but I want to do things right and not owe the IRS.Thank you.

[CarolynM]

So, you have never included your Puerto Rico income on your tax returns? As a US citizen, you must report all the income you earn world wide. You will need to amend your federal and NJ tax returns to include this income. for more information on filing amended tax returns, follow this link: How to Amend

[savila89]

Right I never did. I used another software to file my taxes and they do not accept foreign income. Will I be able to use TurboTax to amend my taxes? Thank you very much

[CarolynM]

Yes, if you follow the link provided, TurboTax will walk you through it.

[savila89]

I tried to click on the link but it doesn't let me. 😕

[CarolynM]

here is the website: tax.intuit.com/tax-tips/amend-return/how-to-correct-federal-tax-returns/L67t0F7il

[savila89]

Thank you so much!

[jaylad3]

My situation is the same as the original question.  My husband paid in 10% upfront while working in PR.  It was his understanding that he would get this money back due to working there for restoration purposes.  How do we go about filing that information?