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How to prepare Form 1040-SS
About Form 1040-SS
Form 1040-SS, also known as the U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), is a tax form used by self-employed individuals who are also residents of Puerto Rico. This form is specifically designed for individuals who have income from a trade or business in Puerto Rico and are subject to self-employment tax. It allows these individuals to report their self-employment income, calculate their self-employment tax liability, and claim various tax credits, including the Additional Child Tax Credit. Residents of Puerto Rico, who are considered U.S. citizens but not U.S. residents for federal income tax purposes, are required to file Form 1040-SS if they meet the criteria for being self-employed and generating income from a trade or business. This form helps them fulfill their tax obligations to both the IRS (Internal Revenue Service) and the government of Puerto Rico. It is important to note that Form 1040-SS is not applicable for individuals who are employees and receive wages subject to withholding tax, as they would typically file a different tax form, such as Form 1040 or Form 1040-PR, depending on their specific circumstances.
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