interesting. Don't people who live in territories get some kind of break from federal taxes?
I believe they do.
Sorry for using Wikipedia as a source but I'm involved right now watching football and just plain lazy today.
>" Though the Commonwealth government has its own tax laws, Puerto Ricans are also required to pay most U.S. federal taxes,[1][2][3][4][5][6][7][8] with the major exception being that some residents do not have to pay the federal personal income tax. In 2009, Puerto Rico paid $3.742 billion into the US Treasury.[9] Residents of Puerto Rico pay into Social Security, and are thus eligible for Social Security benefits upon retirement. However, they are excluded from the Supplemental Security Income (SSI), and the island actually receives a small fraction of the Medicaid funding it would receive if it were a U.S. state.[10] Also, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system.[11]
The federal taxes paid by Puerto Rico residents include import/export taxes,[12] Federal commodity taxes,[13] social security taxes,[14] among others. Residents also pay Federal payroll taxes, such as Social Security[15] and Medicare taxes.[16]
Only certain Puerto Ricans are required to file federal income tax forms. According to the Internal Revenue Service:
In general, United States citizens and resident aliens who are bona fide residents of Puerto Rico during the entire tax year, which for most individuals is January 1 to December 31, are only required to file a U.S. federal income tax return if they have income sources outside of Puerto Rico or if they are employees of the U.S. government. Bona fide residents of Puerto Rico generally do not report income received from sources within Puerto Rico on their U.S. income tax return. However, they should report all income received from sources outside Puerto Rico on their U.S. income tax return. Residents of Puerto Rico who are employed by the government of the United States or who are members of the armed forces of the United States also should report all income received for their services to the government of the United States on their U. S. income tax return.
United States citizens or resident aliens who are not bona fide residents of Puerto Rico during the entire tax year are required to report all income from whatever source derived on their U.S. income tax return. However, a U.S. citizen who changes residence from Puerto Rico to the United States and who was a bona fide resident of Puerto Rico at least two years before changing residence can exclude from U.S. taxable income the Puerto Rican source income received while residing in Puerto Rico during the taxable year of such change of residence. [17]
Bona fide residents of Puerto Rico cannot claim deductions and/or credits allocable to or chargeable against Puerto Rican source income that is excluded from a U.S. tax return. The deductions and credits not attributable to specific income must be divided between excluded income from sources in Puerto Rico and income from all other sources to find the part that can be deducted or credited on a U.S. tax return. Examples of deductions not attributable to specific income include alimony, the standard deduction, and certain itemized deductions such as medical expenses, charitable contributions, and real estate taxes and mortgage interest on your personal residence. Personal exemptions are generally allowed in full..."<
Taxation in Puerto Rico - Wikipedia, the free encyclopedia
Then you have the U.S. Territory of Guam.
Yes this is the same Guam that liberals are afraid that may tip over and sink into the sea if to many people are on the island.
A better source.
Guam Tax Structure
>"The U.S. Congress created the Territorial Government of Guam as a separate taxing jurisdiction by enactment of the Organic Act of Guam in 1950. Section 31 of the Act provides that the income tax laws in force in the United States shall be the income tax laws of Guam, substituting Guam for the United States where necessary and omitting any inapplicable or incompatible provisions. The U.S. Internal Revenue Code with such changes constitutes the Guam Territorial Income Tax Law..."<
Personal and Corporate Income Tax
>" 1.Bona fide residents of Guam are subject to special U.S. tax rules. In general, all individuals with income from Guam will file only one return—either to Guam or the United States.
If you are a bona fide resident of Guam during the entire tax year, file your return with Guam. This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the United States.
For more information, see Publication 570, Tax Guide for Individuals with Income from U.S. Possessions, or Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
2.Guam corporations are subject to income tax on their income from all sources. Other corporations doing business on Guam incur income tax liabilities to Guam on all Guam source income. Corporations not engaged in business on Guam are liable to a 30% tax on certain types of income from Guam sources. The tax rates for corporations doing business on Guam can be found in Section 11 of the Guam Territorial Income Tax Law.
3.Filing dates of Income Tax Returns are as follows:
a. Individual income tax returns for the calendar year are due on or before April 15 of the following year. Individuals reporting on a fiscal year basis must file their returns on the 15th day of the fourth month following the close of the fiscal year. When the due date for doing any act for tax purposes -- filing a return, paying taxes, etc. -- falls on a Saturday, Sunday, or legal holiday, you may do that act on the next business day.
b. Corporations are required to file an income tax return for the calendar year on or before March 15 of the following year. Corporations on a fiscal year basis must file income tax return on the 15th day of the third month following the close of the fiscal year. "<
https://www.guamtax.com/info/structure.html
