Topic no. 901, Is a person with income from sources within Puerto Rico required to file a U.S. federal income tax return?

If you're a bona fide resident of Puerto Rico and your only income is from sources within Puerto Rico, you generally aren't required to file a U.S. federal income tax return. However, if you’re a bona fide resident of Puerto Rico and 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 the income amount exceeds the U.S. filing threshold. A bona fide resident of Puerto Rico with a U.S. filing obligation won't report Puerto Rican source income on a U.S. income tax return. 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 PDF.

If you're a bona fide resident of Puerto Rico and a U.S. government employee, including a member of the U.S. Armed Forces, 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 rules may apply to you for determining residency and source of income. For more information, refer to Publication 570.

If you're a U.S. citizen or resident alien but not a bona fide resident of Puerto Rico, you're required to report all income from worldwide sources on your U.S. income tax return. However, if you are a U.S. citizen who changes residence from Puerto Rico, you may be able to exclude certain income from your U.S. return for the year of move and you may separately be required to file a Form 8898. See Publication 570 PDF.

Separately from whether you have a U.S. income tax filing requirement, you may have an obligation to file a return with the United States reporting self-employment income. Residents of Puerto Rico who aren't required to file a U.S. income tax return must file Form 1040-SS or Form 1040-SS (SP) (in Spanish) with the United States to report self-employment income and, if necessary, pay self-employment tax. For more information on self-employment reporting requirements, see the Instructions for Form 1040-SS PDF PDF or Instructions for Form 1040-SS (SP) PDF PDF.