By Thalia Sevilla
When you start working, it means new responsibilities and among them is filing your income tax return. If you already know something about the forms and have all the documents you need at hand, but still feel overwhelmed with the process, here are some questions you might have:
1. Can I fill out my own form?
Yes, the return must be filed electronically using a return preparation application certified by the Department of Treasury, such as Taxmania.
2. How do I know if I have to file a return?
The following people are required to file the return:
- Resident with gross income net of exemptions greater than $0.
- Non-resident and US citizen with gross income greater than $0.
- A married individual living with a spouse elects to file separately and has $0 gross income net of exemptions.
- A non-resident foreigner who has had income from PR sources subject to tax.
- Every individual who during the taxable year has net income subject to an alternate basic tax of $25,000 or more.
3. How do I know which return I should file?
If you work with salary from sources in Puerto Rico, you must fill out the Income Tax Return for Individuals. If you are also a merchant, there are other forms that could apply to you. You can see the different types of forms for merchants here.
If your income, on the other hand, comes from sources outside of Puerto Rico, you must fill out Form 1040-U.S.
If you are self-employed, you must fill out Form 1040 PR. This form must also be completed if you want to claim the Child Tax Credit.
To learn more about Forms 1040-PR and 1040-US you can read our blog: 1040-PR vs. 1040-US: Which one should I fill out and what is the difference?
4. How do I know which deductions and credits apply to me?
You can check the requirements to see what deductions and credits may apply to you. Access this link to see all the tax credits available for the 2021 Individual Return. You can also read the IRS page to see if other credits and deductions could be applied to you.
5. How do I receive my refund?
If it turns out that you have a refund after filing your return, you can request that it be sent by check to your mailing address that appears on the tax return or by direct deposit to your checking or savings account.
The reimbursement is disbursed directly by the Department of Treasury. Therefore, if you wish to obtain more details, you must verify your SURI account and/or contact the Treasury directly at 787.721.2020 option 2.
6. What do I do if I have to pay?
You can pay by cash, credit card, direct debit, check, or money order. You can learn more about the payment alternatives on the page of the Department of the Treasury here.
If you use Taxmania you have three options:
- Pay the full amount through the form, including an account number to be debited.
- Pay half now and the other half until the deadline, which would be 6 months after filing.
- You choose to postdate your payment. This option allows you to choose a date after the one you are filing for the Department of Treasury to debit your payment, but it must be before the filing deadline.
7. Can I ask for a payment plan?
Yes, the alternatives for the payment plan of your contribution are:
- Through SURI: Documentation is not required if it is less than $50,000.
- Through Hacienda Responde or a Collection District: To formalize a payment plan, the taxpayer must follow the procedure established in Informative Bulletin 99-03. The Department will review the documents and determine if the taxpayer is eligible for a payment plan.
Note: It is important to emphasize that the balance that remains pending payment after its due date will accrue interest and surcharges in addition to the amount owed.
8. What documents should I keep?
You must keep a copy of the forms, the payment evidence, the evidence corresponding to the deductions, and the exemption for dependents.
9. What happens if I do not file on time?
If your return has a refund, you do not incur any penalty for filing after the date. However, if you had to pay, we recommend that you file as soon as possible to minimize penalties and interest.
10. What happens if I don't pay my contribution on time?
A series of percentages are established on the money owed that will be added as surcharges, interest, and penalties. You can read more about the penalties on the page of the Department of the Treasury.
11. How do I amend my return in Taxmania?
If you wish to amend your return, you must go to your Taxmania profile and choose the return you wish to amend from the list. Then, press the "Amend" button on the filed return and follow the instructions.
However, you do not have to amend your return in all cases. That depends on the error you need to fix. You can read more about this in our article When do I have to amend my return?
12. What can I do if I have many doubts when filling out my return?
Filing your first return can be an intimidating time, but with organization and the necessary information, the process can be smooth and easy. If you still have doubts, you can read our blog post: Frequently Asked Questions about the Puerto Rico Tax Return. You can also visit our Blog and FAQ page.
Do you feel ready to fill out your first return? Fill out your return today in an easy, fast, and secure way at Taxmania.com.