IRS PROVIDES GUIDANCE FOR PUERTO RICO

IRS provides guidance for Puerto Rico. In IRS bulletin IR-2022-105, the Internal Revenue Service provided guidance for certain individuals in Puerto Rico on how to file and claim the Child Tax Credit payments that they are entitled to receive under the American Rescue Plan Act. “It’s important for residents of Puerto Rico to know that starting with Tax Year 2021, having only one child qualifies you for the Child Tax Credit”, said IRS Commissioner Chuck Rettig. “We want everyone in Puerto RIco who’s entitled to this benefit to file to receive the Child Tax Credit.” IRS provides guidance for Puerto Rico.

Residents of Puerto Rico must file a federal tax return with the IRS to claim the Child Tax Credit. The credit can be claimed on Form 1040-PR, U.S. Self Employment Tax Return, Form 1040-PR as well. One of these forms can be filed to claim the Child Tax Credit even after last month’s filing deadline. In fact, families who don’t owe taxes to the IRS can file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15th, 2025, without any penalty. Revenue Procedure 2022-22 provides details for bona fide residents of Puerto RIco who have children but do not have a 2021 federal tax return filing requirement, providing them with a simplified way to file one of these tax returns with the IRS to claim the Child Tax Credit. They may follow one of the simplified procedures announced if: Their income for taxable year 2021 is completely exempt from taxation because it is from sources within Puerto Rico , their modified adjusted gross income is less than or equal to $150,000 if married and filing jointly or $112,500 if filing as head of household.

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