Blog

6/25/2015

Extension for Puerto Rico Residents




*admiring sigh* The festive city of San Juan with its vibrant neighborhood, El Viejo San Juan. The cooling waters at Luquillo or Carolina Beach… The surfing and sunsets of Rincon’s leisurely beach and Mosquito Bay’s neon, electric blue water - there’s truly no place like Puerto Rico. With Summer now in full swing, Puerto Rico is like the definitive location for fun in the sun. Clear skies, clear waters, and...taxes? Well, if you can remember all the way back to grade school Geography, Puerto Rico is United States territory. And, as such, taxes have to be paid as if in the continental U.S.

For residents of this summertime paradise, a Form 1040PR or the English Form 1040-SS must be filed.

“Why do I have to file?”
You have to file because the form is a statement of…
  • The net income from self-employment to the federal government of the U.S.
  • The payment of tax on income from self-employment.
Your information from these forms are used by the Social Security Administration (SSA) in order to calculate your benefits from the Social Security program. The tax on income from self-employment may be entitled, regardless of age or if you already receive Social Security or Medicare.

“Am I even qualified to file?”
Well, you have to file anyway if you are
  • A resident of Puerto Rico
  • Not required to file a regular Form 1040
  • Receiving net earnings from self-employment of $400 or more, or $108.28 or more as a church employee
That last qualification also goes for couples who are filing jointly. You may also be required to file a tax return on personal income to the Government of Puerto Rico. For more information, contact your local Department of Finance of Puerto Rico.

Extension to file your return.
The deadline for filing either one of these forms is April 15; however, you can request an extension if you need more time to file. This automatic extension pushes your original deadline by six months to October 15, but it does not change the deadline to pay back taxes you may owe. You have to pay any taxes owed by your original deadline.

You don’t want to file late. Generally, the penalty is 5% of the unpaid taxes for each month or part of month it is late, up to 25% of your unpaid tax. If the return is more than 60 days late, the minimum penalty is $135 or 100% of the unpaid tax, whichever is smaller. This penalty is generally more than the failure-to-pay penalty, so if you need more time, file the extension.

Get back to the summertime paradise of Puerto Rico by e-filing your extension with ExpressExtension. We offer a fast and secure service that will save you time and money. You can even e-file your extension while enjoying the Puerto Rico sights by downloading our Express 4868 app FREE for iOS and Android devices.

For any assistance or questions about e-filing any of our available extension, our live professionals are standing by. Contact us by phone Monday through Friday from 9am to 6pm, Eastern Standard Time, at (803) 514-5155, by email at support@expressextension.com, or by live chat at www.expressextension.com.


No comments:

Post a Comment

Watch
IRS Tax Extension

Support Center

Chat with us