Electronic tax

IRS Offers Guidance for Puerto Rican Residents to Claim Child Tax Credit

The Internal Revenue Service has issued guidelines for certain people in Puerto Rico on how to file and claim child tax credit payments they are entitled to receive under the American Rescue Plan Act.

“It’s important for residents of Puerto Rico to know that beginning with the 2021 tax year, having only one child qualifies you for the child tax credit,” the commissioner said. IRS, Chuck Rettig. “We want everyone in Puerto Rico who qualifies for this benefit to apply to receive the child tax credit.”

Residents of Puerto Rico must file a federal tax return with the IRS to claim the child tax credit. Credit can be claimed on Form 1040-PR, Plan for the Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia, Form 1040-SS, U.S. Self-Employment Tax Return, Form 1040, United States Personal Income Tax Returnor Form 1040-SR, U.S. Income Tax Return for Seniors. Form 1040-PR is a form in Spanish. Form 1040 and Form 1040-SR have Spanish versions. Any of these tax returns 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 returns and claim the Child Tax Credit for the 2021 tax year anytime until April 15, 2025. without any penalty.

Tax procedure 2022-22The PDF provides details for bona fide residents of Puerto Rico who have children but do not have federal tax filing obligations for 2021, providing them with a simplified way to file one of these tax returns. with the IRS to claim the child tax credit. They can follow one of the simplified procedures announced today if:

  • Their income for the 2021 tax year is completely tax-exempt because it comes from sources in Puerto Rico,
  • Their adjusted adjusted gross income for child tax credit purposes is less than or equal to (i) $150,000, if married and filing jointly or as a surviving spouse; (ii) $112,500, if you are reporting as head of household; and (iii) $75,000, if the filer is a single filer or is married and files a separate return,
  • They can claim the child tax credit for an amount greater than zero,
  • They are U.S. citizens or resident aliens (or are treated as U.S. residents),
  • They are not required to file a Form 1040-PR, Form 1040-SS, Form 1040, or Form 1040-SR for the 2021 tax year, for example to report income tax on a self-employment, and
  • They have not yet filed a paper or electronic Form 1040-PR, Form 1040-SS, Form 1040, or Form 1040-SR for the 2021 tax year.

Simplified Filing Procedures instructs eligible Forms 1040-PR and 1040-SS filers to follow the instructions on those forms, except that they are not required to report their adjusted adjusted gross income on line 1 of Part I of the tax return. Eligible Form 1040 and Form 1040-SR filers are encouraged to follow the instructions on those forms, except that they are not required to report their adjusted adjusted gross income on lines 1 through 3 of Schedule 8812 (Form 1040 ), Credits for eligible children and other Dependents.

For 2021, the US bailout increased the child tax credit by $2,000 per eligible child to:

  • $3,600 for children 5 and under at the end of 2021; and
  • $3,000 for children ages 6-17 at the end of 2021.

The US bailout also made the credit fully refundable. This means that bona fide residents of Puerto Rico can claim the full amount of the credit for the 2021 tax year, even if they had no income and paid no U.S. Social Security taxes.

All applicants may file a LEP Schedule (Form 1040), Request for Change of Language Preference (also available as Anexo LEP (Form 1040(SP)), Solicitud para Cambiar la Preferencia de Idioma), along with their tax return to request a change in language preference for future communications from the IRS.

For more information, please visit IRS.gov. To find forms and instructions in Spanish, see Forms, instructions and publications.