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) Revision Date 11/03/2022

• Legal Form Number: 1040
• Year: 2023
• Issuer: Treasury Department
• Section: Treasury Department

Publication 1321 (Rev. 10-2023) Catalog Number 63770L Department of the Treasury Internal Revenue Service www.irs.gov

Publication 1321 (October 2023)

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. The income you receive from Puerto Rico

sources is not subject to U.S. income tax. Because some of the income is exempt (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 exempt 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 $13,850 . . . . . . . .

65 or older enter $15,700 . . . . . . .

Married filing jointly both under 65 enter $27,700. . . . . .

one 65 or older enter $29,200 . . . . .

both 65 or older enter $30,700 . . . . .

Head of household under 65 enter $20,800 . . . . . . . .

65 or older enter $22,650 . . . . . . .

Qualifying Surviving Spouse under 65 enter $27,700 . . . . . . . .

65 or older enter $29,200 . . . . . . .

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 (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 exempt 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 (line 2a) is equal to or more than your

adjusted filing requirement (line 2d). If you are married filing a separate return, you must file a return if

your gross income subject to U.S. tax is equal to or more than $5.