By: CPA Edmy A. Rivera-Colón

 

Tax season can be an overwhelming process for many taxpayers. However, with good organization and preparation, you can fulfill your tax responsibilities efficiently and avoid complications. Below, we explain the essentials for correctly filing your tax return.

A. Deadlines and Extensions

The deadline to file the Puerto Rico Individual Income Tax Return for the 2024 tax year is April 15, 2025. If you need more time, you can request an extension of up to six additional months, extending the deadline to October 15, 2025. However, this extension only applies to the return filing, not tax payments.

The deadline for the federal tax return is April 15, 2025.

B. Who Must File a Tax Return?

In Puerto Rico, the following individuals must file a tax return:

  1. Residents with gross income greater than zero, unless their tax was entirely withheld.
  2. Non-residents with income from Puerto Rico sources greater than zero unless the tax was fully paid at the source.
  3. Individuals with net income subject to the Alternative Basic Tax of $25,000 or more.

C. Ways to File Your Tax Return

There are several options for filing your return:

  1. Through SURI, the Puerto Rico Department of Treasury’s online platform.
  2. Using tax software authorized by the Department of Treasury.
  3. Hiring a tax preparer or a Certified Public Accountant (CPA). It is important to note that a tax specialist is not necessarily a CPA, so it is advisable to verify their credentials.

D. Essential Documents

To correctly complete your tax return, you should have:

  1. W-2 forms and other withholding statements.
  2. Income from rental properties, pensions, mortgage interest, student loans, among others.
  3. Proof of payments and applicable deductions.

Contact your employer or withholding agent if you have not received the required tax document. If you do not receive a response, you may file a complaint with the Puerto Rico Department of Treasury.

E. Tax Credits

For the 2024 tax year, you may qualify for:

  1. Child Tax Credit (CTC): Up to $1,700 per qualifying child. This applies to those filing the federal 1040-SS tax return. For W-2 employees, the credit is limited to the amount paid in Social Security and Medicare. For self-employed individuals, the credit is limited to 50% of their Social Security and Medicare liability.
  2. American Opportunity Credit: A benefit for college students in their first four years of studies. Up to $1,000 refundable, depending on eligible expenses not covered by scholarships.
  3. Earned Income Tax Credit (EITC): Available on the Puerto Rico tax return for low- to moderate-income taxpayers. The credit can be as high as $7,563 for those with three or more qualifying dependents. The amount varies based on income and filing status.

F. Consequences of Late Filing

Failing to file your tax return by April 15 may result in penalties, interest, and surcharges. If you do not have all the necessary information, you can request an extension and make an estimated payment to avoid additional charges.

Important: The extension only applies to filing, not to tax payments. If you owe taxes, you must pay them along with your extension request to avoid interest and penalties.

Following these steps and planning, you can fulfill your tax obligations smoothly. If you have any doubts about your situation, consult a CPA or tax specialist!

 

March 11, 2025