The National Directory of Certified Public Accountants

Ask A CPA - Income Reporting from U.S. Possessions

Nonresident Alien - A Bona Fide Resident Of Puerto Rico

If you are a bona fide resident of Puerto Rico during the entire tax year and a nonresident alien of the U.S., you generally must file:,br> A Puerto Rican tax return reporting income from worldwide sources. If you report U.S. source income on your Puerto Rican tax return, you can claim a credit against your Puerto Rican tax, up to the amount allowable for income taxes paid to the United States. A U.S. tax return (Form 1040) reporting income from worldwide sources, but Excluding Puerto Rican source income other than amounts for services performed as an employee of the U.S. or any of its agencies. For tax purposes other than reporting income, you will be treated as a nonresident alien individual with its associated limitations.

If you need professional help with "Income Reporting from U.S. Possessions" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.