form 1040 for taxpayers with income from sources outside Puerto Rico, using.This credit is claimed filing federal income tax returns with the IRS using one of the following forms:

Special limitations on the reductions apply. The amount of credit is reduced by $50 for each $1,000 the taxpayer’s modified adjusted gross income exceeds the abovementioned thresholds.

if married filing jointly, $150,000, or less.

The maximum credit is available to taxpayers with a modified adjusted gross income of:

up to $3,600 for a qualifying child under 6.

up to $3,000 for a qualifying child from 6 to 17 age years old.

The credit amount as well as the age limits have increased for 2021.įor taxable year 2021, the child tax credit offers the following: This credit is to help and assist families who have or take care of children. Additional limitations included that the taxpayer was required to have earned income and social security or Medicare taxes withheld or paid self-employment tax. In past years bona fide Puerto Rico residents were only able to qualify for the credit if they had three or more qualifying children.

it is the taxpayer’s child or the descendant of such child or the taxpayer’s brother, sister, stepbrother or stepsister or descendant of such relative.įor 2021, ARPA extended the availability of the credit for 17 years old dependents and enhanced the credit by eliminating certain restrictions.

if married, the child will not file a joint tax return, and.

the taxpayer provided at least half of his or her financial support during the year,.

the child must have lived with the taxpayer for more than half the year,.

the child must be 17 years old or younger,.

To be a qualifying dependent, the following general requirements must be met: Puerto Rico bona fide residents with qualifying dependents are eligible for the child tax credit. Below you will find eligibility and requirement details for these credits, so you do not miss the opportunity to claim those you are eligible for. These are federal tax credits, administered by the Puerto Rico Treasury Department except for the child tax credit which is claimed directly to the IRS. Some of these credits were extended to Puerto Rico bona fide residents increasing interest and traffic on individual tax return filings for the 2021 tax year. ARPA increased several tax credits to extend financial aid for qualifying taxpayers and allow additional taxpayers to benefit from them. The American Rescue Act of 2021 (hereinafter “ARPA”) was enacted to aid American workers and bring them immediate relief in response to the aftermath of the Coronavirus Pandemic.

2021 puerto rico income tax brackets