Quote:I can agree with that. However, do you do the same thing to places like Guam, American Samoa and some of the Virgin Islands?
Honestly, I wasn't sure how that all worked. Does that apply to Puerto Rican natives only? As an example, say I decided to move to Puerto Rico and worked there, would I have to pay federal income taxes?
According to Wikipedia, if you are a bona fide resident for the whole year and all your earnings were within Puerto Rico, you do not have to pay income tax.
I guess it's the old no taxation without representation thing?
Quote:I can agree with that. However, do you do the same thing to places like Guam, American Samoa and some of the Virgin Islands?
Honestly, I wasn't sure how that all worked. Does that apply to Puerto Rican natives only? As an example, say I decided to move to Puerto Rico and worked there, would I have to pay federal income taxes?
Yes that goes for all out territories the free ride has to end.
Quote:According to Wikipedia, if you are a bona fide resident for the whole year and all your earnings were within Puerto Rico, you do not have to pay income tax.
I guess it's the old no taxation without representation thing?
Similar concept applies to other US Citizens working abroad. We had workers in Egypt supporting a DOD Aerospace Contract and as long as they were out of the US for a certain amount of weeks (like 42+), they were tax exempt. I can't recall what the exact number of weeks was but one of our workers was in a bind because they came back to the US for a dying family member and got hit with taxes since their visit extended beyond the annual limitation to be tax exempt.