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Note: If you are at least 65 years old or blind, you can claim an additional 2023 standard deduction of $1,850 (also $1,850 if using the single or head of household filing status).
You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an individual and your combined income exceeds $25,000.
Filing Puerto Rico U.S. Tax Returns. If you are a Puerto Rico bona fide resident, you must usually file a Puerto Rico tax return. If you are not a bona fide resident of Puerto Rico, you must file both a Puerto Rico tax return and a U.S. tax return.
Tax-exempt interest refers to interest income that is not subject to taxation, most notably at the federal level. Some municipal bonds may also be triple-exempt, where tax is not paid at the federal, state, nor local level.
Taxable income is the portion of your gross income used to calculate how much tax you owe in a given tax year. It can be described broadly as adjusted gross income (AGI) minus allowable itemized or standard deductions.

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What is a 480 form? Form 480 is a document that summarizes payments that have not been subject to withholding, payments generated to a supplier for services, distributions, among others, to declare statements before the Department of the Treasury of Puerto Rico.
Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.
Earned income does not include amounts such as pensions and annuities, welfare benefits, unemployment compensation, workers compensation benefits, or social security benefits.

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