Individual Return Inst. 2020 - Pr
2020
INFORMATION
INSTRUCTIONS
BOOKLET
INDIVIDUAL
INCOME TAX RETURN
2020
DUE DATE:
Monday, May 17, 2021
FOR PUERTO RICO
FILE YOUR RETURN BEFORE MAY 17, 2021
DEPARTMENT OF THE TREASURY
GOVERNMENT OF PUERTO RICO
1
TABLE OF CONTENT
Filing Requirements .......................................................................................................................... 4
Taxpayer Bill of Rights .................................................................................................................... 5
Relevant Facts ................................................................................................................................. 6
Suggestions to Avoid Mistakes when Filing your Return........................................................ 11
Additional Child Tax Credit for Bona Fide Residents of Puerto Rico ..................................................... 11
Instructions to Complete the Return:
Taxpayer Moved to Puerto Rico During the Year ......................................................................... 12
Name, Address and Social Security Number ............................................................................... 12
Change of Address .................................................................................................................... 12
Taxpayer Deceased During the Taxable Year .............................................................................. 12
Questionnaire - Taxpayer Information ..........................¡........................................................¡¡.. 13
Refund ¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡...................................................¡. 14
Payment ¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡...............................................¡¡.¡.. 14
Deposit ¨C Authorization for Direct Deposit of Refund ¡¡¡................................................¡...¡. 15
Signature of the Return ¡¡¡¡¡¡¡¡¡¡¡¡¡..¡........................................................¡¡ 15
Payment for the Preparation of the Return ¡¡¡¡¡¡..¡¡................................................¡¡ 15
Part 1 - Adjusted Gross Income ¡¡¡¡¡¡¡¡¡¡.....................................................¡..¡.... 15
Part 2 - Deductions, Exemptions and Net Taxable Income ................................................................... 17
Part 3 - Computation of Tax, Credits and Tax Withheld or Paid ............................................................... 19
Instructions to Complete the Schedules:
Schedule A Individual - Deductions Applicable to Individual Taxpayers ¡...............................¡ 24
Schedule A1 Individual - Dependents and Beneficiaries of Educational Contribution and
My Future Accounts ............................................................................ 28
Schedule A2 Individual - Tax on Income Subject to Preferential Rates ¡¡..............................¡¡ 30
Schedule B Individual - Recapture of Credits Claimed in Excess, Tax Credits, and Other Payments
and Withholdings ¡¡¡¡.............................................¡¡¡¡¡¡¡ 31
Schedule C Individual - Credit for Taxes Paid to Foreign Countries, the United States,
its States, Territories and Possessions .................................................... 37
Schedule CH Individual - Transfer of Claim for Exemption for Child (Children) of Divorced
or Separated Parents .......................................................................... 39
Schedule CO Individual- Optional Computation of Tax ................................................................ 39
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2020
2020
Instructions to Complete the Schedules (Continued):
Schedule D Individual
- Capital Assets Gains and Losses, Total Distributions from Qualified Pension
Plans and Annuity Contracts ................................................................... 43
Schedule D1 Individual - Sale or Exchange of Principal Residence .................................................. 48
Schedule DDC Individual - Due Diligence Checklist by Accredited Agent - Tax Returns Specialist ..... 48
Schedule E - Depreciation ................................................................................................................ 49
Schedule E1 - Depreciation for Business with Volume of $3,000,000 or Less ......................................... 49
Schedule F Individual
- Other Income ¡..................................................¡¡¡¡¡¡¡¡¡¡. 50
Schedule FF Individual - Interests, Dividends and Miscellaneous Income ¡.................................... 54
Schedule F1 Individual - Detail of Income of Resident Individual Investors ..................................... 56
Schedule G Individual
- Sale or Exchange of All Trade or Business Assets of a Sole
Proprietorship Business ............................................................................ 57
Schedule H Individual
- Income from Annuities or Pensions in the form of periodic payments ......... 58
Schedule IE Individual - Excluded and Exempt Income¡¡...........................................¡¡¡¡ 59
Schedules J Individual, K Individual, L Individual, M Individual and N Individual .................................... 63
Schedule
Schedule
Schedule
Schedule
Schedule
J Individual K Individual L Individual M Individual N Individual -
Manufacturing Income
Income from the Sale of Goods
Farming Income
Income from Services Rendered
Rental Income
Schedule O Individual
- Alternate Basic Tax .................................................................................... 74
Schedule P Individual
- Gradual Adjustment ............................................................................... 75
Schedule R Individual - Partnerships, Special Partnerships and Corporations of Individuals
(Reconciliation)................................................................................... 75
Schedule R1 Individual - Partnerships, Special Partnerships and Corporations of Individuals ......... 76
Schedule T Individual
- Addition to the Tax for Failure to Pay Estimated Tax in Case of Individuals .... 78
Schedule X Individual
- Optional Tax to Self Employed Individuals .............................................. 79
Obligation to Pay Estimated Tax ................................................................................................................ 80
Occupational Codes List ........................................................................................................................ 82
Check List .......................................................................................................................................... 83
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2020
FILING REQUIREMENTS
WHO MUST FILE THE INCOME TAX RETURN?
a) Every individual resident of Puerto Rico who is an individual taxpayer, married or married individual living
with spouse who opts to file a separate tax return, whose gross income net of exemptions for the taxable
year is more than zero, unless the tax has been totally withheld at source;
b) Every individual not resident of Puerto Rico, citizen of the United States or nonresident alien, who is an
individual or married taxpayer, whose gross income from Puerto Rico sources for the taxable year, net of
exemptions, exceeds zero, unless the tax has been totally paid at source; or
c) Every individual who during the taxable year has net income subject to alternate basic tax of $25,000 or
more.
ALL TAXPAYERS MUST FILE THEIR RETURNS ELECTRONICALLY
WHEN MUST THE RETURN BE FILED?
MAY 17
If you file on a calendar year basis or do not keep accounting records, you must file your
return on or before Wednesday, April 15, 2021. Notwithstanding, as established in
Administrative Determination No. 21-04, the return corresponding to taxable year 2020
must be filed on or before Monday, May 17, 2021.
HOW THE RETURN MUST BE FILED?
The return must be filed electronically through the Internal Revenue Integrated System (SURI, for its Spanish
acronym) or using any program or application certified by the Department, following the procedures established by
the Department in the Internal Revenue Circular Letter No. 21-06 of February 25, 2021 ("CC RI 21-06").
4
2020
TAXPAYER BILL OF RIGHTS
The Taxpayer Bill of Rights grants the following rights under
the Puerto Rico Internal Revenue Code of 2011, as amended
(Code):
To waive the rights described in the preceding paragraphs, if
such waiver is made knowingly and voluntarily.
To grant a written power of attorney to authorize any person to
represent you during a tax interview or process. Such person
shall receive, for purposes of the interview, equal treatment as
you, unless you are notified that such person is responsible for
an unreasonable delay or interference with the audit.
To receive a proper, considerate and impartial treatment.
The information submitted will be confidential.
All interviews must be at a reasonable time and place for the
taxpayer, in coordination with the employee of the Department
of the Treasury (Department).
No discrimination on the basis of race, color, sex, birth, origin or
social condition, or political, religious ideas or association of
any taxpayer or his/her representative. No records will be
maintained of tax information for these purposes.
The interview or audit will not be used to harass or intimidate in
any manner the interviewed person.
The Department¡¯s employees will explain and protect your
rights during all phases of the process. If you believe that your
rights have been violated, you should discuss this matter with
the supervisor of the employee. If you do not agree with the
action taken by the supervisor, you may file a complaint with the
Office for the Protection of Taxpayer Rights.
To receive a clear and simple explanation of the process to
which the taxpayer will be subjected and the rights that assist
him.
To be assisted by an attorney, accountant, certified public
accountant or any other authorized person, at any moment
during the interview.
OFFICE FOR THE PROTECTION OF TAXPAYER RIGHTS
To be informed prior to the interview of the intention to tape the
interview, and to be able to obtain an exact copy of such recording
subject to the payment of the cost thereof.
The Office for the Protection of Taxpayer Rights (Ombudsman
of the Taxpayer) was created to assure compliance with the
provisions of the Taxpayer Bill of Rights. Said office is located at
the Department of the Treasury in Old San Juan, Office 105.
For assistance, please call (787) 977-6622, (787) 977-6638
or (787) 721-2020, extension 2180.
To be informed of the nature of your tax liability.
To be advised of your right against self-incrimination by your
own testimony, to remain silent and that your silence should not
be taken or commented against you, in case of a possible
exposure to a criminal action.
The Ombudsman of the Taxpayer is responsible for attending
the problems and claims of the taxpayers and to facilitate the
process between the taxpayers and the Department. Also, the
Ombudsman of the Taxpayer has authority to prevent or correct
any infringement of the rights of the taxpayer made by any
employee of the Department.
To consult an attorney, accountant, certified public accountant,
or agent authorized to represent you within the Department at
any moment during the interview, or to be able to conclude the
interview even when it has commenced.
For additional information, you can request the booklet: ¡°Carta
de Derechos del Contribuyente¡±.
To be notified in writing of any adjustment made by the
Department as a result of a tax audit when it involves the
addition of interests, penalties and surcharges, as provided by
the Code, as well as the exact amount of the adjustment and the
reasons for such changes.
To claim the benefits of a payment plan if you can¡¯t pay the full
tax liability when it becomes due.
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