![]() ![]() Īs the cutoff point for income taxation in Puerto Rico is lower than that imposed by the U.S. states: "From 1998 up until 2006, when Puerto Rico was hit by its present economic recession, Puerto Rico consistently contributed more than $4 billion annually in federal taxes and impositions into the national fisc." This was more that the IRS collected from taxpayers in six States of the Union: Vermont, Wyoming, South Dakota, North Dakota, Montana, and Alaska, as well as the Northern Mariana Islands. Puerto Rico residents pay more in federal income taxes every year than do residents of six U.S. The IRS does not require individuals or households below the poverty threshold to pay federal income tax. ![]() As of 2019, the median income of Puerto Rico was $20,166, which falls below the poverty threshold of $24,400. However, notwithstanding these requirements, some residents of Puerto Rico are not required to file federal income tax returns because their income falls below the poverty threshold. ![]() Puerto Rico-based corporations that intend to send funds to the U.S.earned income from sources outside Puerto Rico and.do business with the federal government.work for the federal government such as US Post Office employees, and federal agents of any of the federal executive and judicial branches located in Puerto Rico.Residents falling within the following categories must pay tax on their income to the United States federal government, via the Internal Revenue Service: Puerto Ricans on the island paid over $4 billion in federal taxes in fiscal year 2021. Specifically, residents of Puerto Rico pay customs taxes, Federal commodity taxes, and all payroll taxes (also known as FICA taxes, which include (a) Social Security, (b) Medicare, and Unemployment taxes). Residents of Puerto Rico are required to pay most types of federal taxes. Federal law requires payment of federal income tax from the following residents and corporations only: federal government employees in Puerto Rico, residents who are members of the United States military, those with income sources outside of Puerto Rico, those individuals or corporations who do business with the federal government, and those Puerto Rico-based corporations that intend to send funds to the United States. Not all Puerto Rican employees and corporations pay federal income taxes. federal taxes include customs taxes, federal commodity taxes, and federal payroll taxes ( Social Security, Medicare, and Unemployment taxes). Consequently, while all Puerto Rico residents pay federal taxes, many residents are not required to pay federal income taxes. ![]() citizens however, Puerto Rico is not a U.S. Puerto Rico is an unincorporated territory of the United States and Puerto Ricans are U.S. Payment of taxes to the federal government, both personal and corporate, is done through the federal Internal Revenue Service (IRS), while payment of taxes to the Commonwealth government is done through the Puerto Rico Department of Treasury ( Departamento de Hacienda). Taxation in Puerto Rico consists of taxes paid to the United States federal government and taxes paid to the Government of the Commonwealth of Puerto Rico. ![]()
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