What is the IRC Section 933 Income Exclusion?
Qualifying Income Types and Common Pitfalls
Interaction with Act 60 and U.S. Filing Obligations
Frequently Asked Questions
Do I still need to file a US tax return if all my income is from Puerto Rico?
Yes, in most cases. Even if all your income is excludable under IRC 933, you may still have a U.S. filing requirement. It depends on your filing status, gross income amount, and whether you have self-employment income. Our review can help clarify your specific filing obligations.
How does IRC 933 affect my Social Security and Medicare taxes?
IRC Section 933 only applies to U.S. federal income tax. It does not exclude your income from U.S. self-employment taxes (Social Security and Medicare). If you are self-employed in Puerto Rico, you are typically still liable for these taxes on your self-employment income.
What happens if I incorrectly claim the IRC 933 exclusion?
Incorrectly claiming the exclusion can lead to significant penalties, back taxes, and interest. The IRS may disallow the exclusion, and you could face an audit. A thorough review is designed to catch these potential issues before you file, ensuring your claim is well-supported.
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This content is for informational purposes only and does not constitute tax, legal, or accounting advice.