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amp92
New Member

Non-Resident/Resident Tax Return

I am very confused about my current situation. I am a resident of Massachusetts. I moved to Puerto Rico with my significant other who owns his home (I am not on a lease/mortgage). I have not earned any income since June 2023 when I came to PR and I do not believe I can obtain residency in PR due to having closer connections in MA (Driver’s license, all my banking, my family ties). I am starting a federal job which I marked all my paperwork as this current PR address because that’s my physical location and I did not want to be deceitful in saying I was in MA. My agency wants me to file a state income withholding form for PR, put all my addresses as PR, and basically file as though I’m a resident here. Am I going to be paying state income taxes in both PR and MA? Also, my agency is out of South Carolina. I do not understand how to go about this the proper way to handle the paperwork so when I go to file my taxes, I’m not completely lost.

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1 Reply
AmyC
Expert Alumni

Non-Resident/Resident Tax Return

As a U.S. citizen living in a U.S. territory, it does get a little tricky. Since your employer is SC based, you will need to file a U.S. income tax return unless they claim all income is earned in Puerto Rico and you are a bona fide resident -then you only need to file the PR return. See Topic 901

 

Which means for now, a US return is required. If the employer treats you as working in MA, where you feel to be a resident with intentions to return and make that your home base again, then you could go that route.

 

As for residency, you aren't trying to become a US citizen so the residency issue consists of tax home, physical presence and the closeness connection. While you feel closely connected to MA now, I would imagine that moving to be with a new partner implies that you plan on making a new life there. You may be testing the waters for now but should revisit the thought process and your plans every so often.

 

We do not handle PR tax so I can't speak to those issues. You will need to make some decisions and decide if /when you want to declare a residency there. If you need to file, you can file the Puerto Rico state return directly with the Commonwealth of Puerto Rico

 

For more information see IRS Publication 570 page 14.

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