Publication 1321 - Special Instructions For Bona Fide Residents Of Puerto Rico Who Must File A U.S. Individual Income Tax Return

Sep 19, 2026

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Publication 1321 provides special filing instructions for bona fide residents of Puerto Rico who must submit a U.S. Individual Income Tax Return (Form 1040 or Form 1040-SR) and claim an exclusion for income earned in Puerto Rico. It defines who qualifies, outlines when U.S. federal filing is required, and explains how to adjust standard or itemized deductions by allocating portions related to excluded Puerto Rico income. The publication also describes the worksheet approach to determine filing requirements and reviews general source-of-income rules used to apply section 933.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

Bona Fide Residents Of Puerto Rico

Who Must File

Worksheet For Adjusting Standard Deduction And Filing Requirement

Source Of Income

Special Rules

Publication 1321 (October 2025) Special Instructions For Bona Fide Residents Of Puerto Rico Who Must File A U.S. Individual Income Tax Return (Form 1040 or Form 1040-SR) If you are a bona fide resident of Puerto Rico who will file a U.S. Federal Income Tax Return, Form 1040, and claim an exclusion for income earned in Puerto Rico, you will have to make certain adjustments on your return. These special instructions explain the adjustments, and how to make them on your return. Bona Fide Residents of Puerto Rico: Generally, you are a bona fide resident of Puerto Rico if during the tax year, you: • Meet the presence test • Do not have a tax home outside Puerto Rico, and • Do not have a closer connection to the United States or to a foreign country than to Puerto Rico. Publication 570 discusses these requirements and provides information on the special rules that apply in the year you are moving to or from Puerto Rico. WHO MUST FILE In general, section 933 of the U.S. Internal Revenue Code requires that U.S. citizens who are bona fide residents of Puerto Rico during the entire taxable year, but who receive income from sources outside Puerto Rico and/or receive income as a civilian or military employee of the U.S. Government in Puerto Rico, must file a U.S. Federal income tax return. Active duty members of the U.S. Armed Forces who claim Puerto Rico as their legal residence are employees of the U.S. Government. They are required to file a U.S. income tax return and declare the income they receive for their services rendered in Puerto Rico, the United States, or foreign countries in compliance with their military orders. The income you receive from Puerto Rico sources (except income received as a civilian or military employee of the U.S. government) is not subject to U.S. income tax. See source of income rules explained in this publication. Because some of the income is excluded (under Code section 933) a part of the itemized deductions or a part of the standard deduction amount on your U.S. return must be allocated to that excluded income. This computation must be made before you can determine if you must file a U.S. tax return, because the minimum income level at which you must file a return is based on the standard deduction for your particular filing status. Use the following worksheet to modify standard deduction and to determine if you have to file a U.S. income tax return: 1. Enter STANDARD DEDUCTION If your filing status is (see caution below) Single under 65 enter $15,750 65 or older enter $17,750 Married filing jointly both under 65 enter $31,500 one 65 or older enter $33,100 both 65 or older enter $34,700 Head of household under 65 enter $23,625 65 or older enter $25,625 Qualifying surviving spouse under 65 enter $31,500 65 or older enter $33,100 Married filing separately See note after line 2d below. Caution: If someone can claim you as a dependent, enter amount from the Standard Deduction Worksheet in the instructions for Form 1040 or Form 1040-SR, as applicable. 2. Allowable portion of STANDARD DEDUCTION a. Gross income subject [to U.S. tax](to U.S. tax) (include taxable social security benefits); use Worksheet 1 of Pub. 915 to compute your taxable social security benefits) ........................................................................... b. Total gross income from all sources (including excluded P.R. Income) ... c. Divide line 2a by line 2b .......................................................................... d. Adjusted filing requirement: Multiply STANDARD DEDUCTION (line 1) by line 2c ................................................................................................. [You must file a return if your gross income subject to U.S. tax](You must file a return if your gross income subject to U.S. tax) (line 2a) is equal to or more than your adjusted filing requirement (line 2d) . If you are married filing a separat

FAQs

Who qualifies as a bona fide resident of Puerto Rico for this publication?

A person generally qualifies if, during the tax year, they meet the presence test, do not have a tax home outside Puerto Rico, and do not have a closer connection to the United States or a foreign country than to Puerto Rico.

When are bona fide Puerto Rico residents required to file a U.S. federal income tax return?

In general, section 933 requires U.S. citizens who are bona fide residents of Puerto Rico for the entire taxable year and who receive income from sources outside Puerto Rico and/or certain U.S. Government employment income in Puerto Rico to file a U.S. federal income tax return.

How does Publication 1321 explain allocating deductions when Puerto Rico income is excluded?

Because part of itemized deductions or part of the standard deduction amount must be allocated to excluded Puerto Rico income under Code section 933, the allocation computation must be completed before determining whether the filing threshold is met.

Sep 19, 2026

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