What Replaced the 1040 PR Form for Puerto Rico Filers?
Understand Form 1040-PR, the specific U.S. tax instrument for Puerto Rico residents to manage self-employment tax obligations and access certain credits.
Beginning with the 2023 tax year, the IRS discontinued Form 1040-PR. Bona fide residents of Puerto Rico who previously filed this form must now use Form 1040-SS, U.S. Self-Employment Tax Return. This change consolidates reporting for residents of Puerto Rico with other U.S. territories. The purpose of Form 1040-SS is to report and pay Social Security and Medicare taxes on net earnings from self-employment and to claim the Additional Child Tax Credit (ACTC).
Who Must File Form 1040-SS
A bona fide resident of Puerto Rico who is not otherwise required to file a U.S. income tax return must file Form 1040-SS if they meet certain income thresholds. The most common requirement is having net earnings from self-employment of $400 or more. This applies to individuals in business for themselves, including nonfarm or farm enterprises and income from some partnerships.
A separate threshold applies to individuals who work for a church or a qualified church-controlled organization with an exemption from employer Social Security and Medicare taxes. If you received $108.28 or more in wages from such an organization, you must file Form 1040-SS to pay self-employment tax on that income.
You may also need to file Form 1040-SS even if you do not meet the income thresholds for paying self-employment tax. Bona fide residents of Puerto Rico with one or more qualifying children must file the form to claim the Additional Child Tax Credit (ACTC). This refundable credit could result in a payment from the government.
Required Information and Form Completion
To complete Form 1040-SS, you will need specific personal and financial information. This includes the full name and U.S. Social Security Number (SSN) for yourself, your spouse, and any dependents. You also need your mailing address in Puerto Rico and detailed financial records of business income and deductible expenses.
The form and its detailed instructions are available on the IRS website, IRS.gov. For the 2024 tax year, filers must use the 2024 version of Form 1040-SS. The form is available in both English and Spanish, ensuring accessibility for residents of Puerto Rico.
For self-employed individuals, the process starts with calculating net earnings by completing Schedule C (Form 1040), Profit or Loss from Business, or Schedule F (Form 1040), Profit or Loss From Farming. On these schedules, you report your gross business income and subtract allowable business expenses. This determines your net profit or loss.
This net profit figure is carried over to Schedule SE (Form 1040), Self-Employment Tax, which is attached to Form 1040-SS. On Schedule SE, you multiply net earnings by 92.35% to find the portion subject to tax. For 2024, the 12.4% Social Security tax applies to the first $168,600 of earnings, while the 2.9% Medicare tax applies to all net earnings. The result is your total self-employment tax.
If filing to claim the Additional Child Tax Credit, you will complete Part I of Form 1040-SS. You must provide the names, SSNs, and relationship for each qualifying child. The form guides the calculation to determine the credit amount, which for 2024 is up to $1,700 per child and may result in a refund.
Submitting Your Form and Payment
The deadline for filing Form 1040-SS for the 2024 tax year is April 15, 2025. It is important to mail your completed return on or before this date to avoid potential penalties for late filing.
You must mail your completed Form 1040-SS and all required schedules to a specific IRS address. The correct mailing address for filers from Puerto Rico is in the form’s instructions. This address often differs from other service centers, so verify the location before mailing.
If you owe tax, you have several payment options. You can pay electronically through IRS Direct Pay with a bank account, or by debit card, credit card, or digital wallet, but be aware that card payments involve a processor fee. Another option is to mail a check or money order with your return, made payable to the “United States Treasury” and accompanied by Form 1040-V, Payment Voucher.
After submitting your return, keep a complete copy of the signed form and all attachments for your records. The IRS recommends keeping tax records for at least three years from the filing date. If you are due a refund from the ACTC, you can track its status on the IRS website a few weeks after filing.