American citizen returned from Puerto Rico this year and has income earned in the US, so I am filing a 1040 and PY state return. It is my understanding from the research I have done, that the Puerto Rican income will not be included on the 1040 return this year if he qualifies under the special rule: i.e, that he was a bona fide resident of Puerto Rico for at least 2 years and changes his residence from Puerto Rico during a tax year. Have I got it right? If he did not qualify for this special rule, then the income would be treated as foreign income and FIE would apply. In this case, he did not meet the 330 day rule for that.
He filed a Puerto Rican tax return last year. No withholding, but he did pay Social Security and Medicare taxes on the income. He does not work for the US Government, and has not filed a US tax return while a resident in Puerto Rico.
He filed a Puerto Rican tax return last year. No withholding, but he did pay Social Security and Medicare taxes on the income. He does not work for the US Government, and has not filed a US tax return while a resident in Puerto Rico.