Tax season is here: refund or tax bill. Here are some tips, from the basics to options for reducing what you owe.
🤔 First, what is a planilla and how do I know if I need to file one?
The planilla de contribución sobre ingresos is the official document through which you report to the government your income and expenses for the year.
From that information, calculations are made to determine whether you owe additional taxes or whether you have money coming back to you (a refund) from taxes already withheld from your paycheck.
This document is filed annually, and the deadline to file this year is Tuesday, April 15, 2025.
As a general rule, you must file a planilla in Puerto Rico if you live on the Island and had income greater than zero, regardless of your marital status. If you are not a resident, you must file if you received income greater than zero from Puerto Rico sources.
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This article is presented by Popular. Learn more on its Mi Futuro page.
Start here📝 How to fill it out
Make sure you fill out your planillas correctly and on time. Here are some tips to help you understand the process.
👩💻 Create an account on SURI: This is Puerto Rico's Sistema Unificado de Rentas Internas, the digital tool provided by the Departamento de Hacienda to streamline tax filing. Opening an account will let you file your planilla electronically and keep all your information in one place.
📑 Review your documents: You will need proof of income, such as a W-2 or Formulario 480, depending on whether you are a salaried employee or self-employed. You can access these documents through your SURI account as well as through your employer. More details on how to obtain and submit these documents correctly are provided below.🤞
👩🏫 Get help from someone who knows: If you prefer to hand off your planillas to experts, you can use one of the providers authorized by the Departamento de Hacienda or a private provider. Keep in mind that these providers may charge fees for filing.
💼 What documents do I need?
Here is a breakdown of the documents you need based on your type of employment.
If you are a salaried employee 💻
If you work for a company, you need:
Your Comprobante de Retención (W-2): This is the key document your employer gives you each year. It shows everything you earned and the deductions, such as taxes, already withheld from your paycheck.
Formulario 480.6A: If you had other income (such as bank interest or dividends), you will also need this form.
If you are self-employed 🚀
This is where things get more involved. Keep in mind that if you are self-employed, you must have a merchant registration, obtained through SURI. You will need:
Your receipts and invoices: 👏Save everything. Every receipt for gas, equipment, materials, anything you spent on your business can help you pay less in taxes.
Formulario 480.6SP: This document is your best resource if you are self-employed. This is where you report everything you earned from your services.
Formulario 480.6B: If you also have income from rentals or royalties, this form is for you.
Forma 1040-SS: This is used to report and pay the federal self-employment tax and to claim the Child Tax Credit. This federal form is designed specifically for residents of U.S. territories and includes Social Security and Medicare contributions made during the year. Note: filing it does not necessarily mean you have to file a federal tax return.
Popular x Platea: Visit hacienda.pr.gov for more detailed information on the forms required based on your type of work.
🤑 Your refund
Make sure to maximize it during the filing process. Check whether you qualify for anything that could increase your refund when you file.
Check eligibility for the work credit: The work credit could mean savings on your taxes and more money in your pocket. It depends on the income you had during the year and other factors such as filing status and number of dependents.
Check eligibility for the dependent credit: If you have minor dependents, you may qualify for the Child Tax Credit through a federal return.
😎 Reduce your taxes
There are several ways to reduce the taxes you pay to the government. For example, you can deduct from your income the contributions you make to your retirement savings account, commonly known as an IRA2, among other options.
IRA accounts: Secure your future while reducing your taxes today. Open an IRA and, depending on which one you choose, you may not only be able to deduct your contribution from your income tax return, but also earn interest that is tax-exempt.3
Loans: If you are paying a mortgage or student loan, you may be able to deduct some or all of the interest on your return, depending on your tax situation. The interest will be detailed on a form issued by the institution holding your debt. You will need to submit that detail along with your return to claim the deduction.
Your 401K: Another way to reduce your taxes is through contributions to a 401K plan.4 This is also a way to save for retirement and put your money to work for you. Although these contributions are not deducted directly from your return, they are deducted from your taxable income. That means that when you receive your W-2 withholding statement, your taxable income will be lower. In addition, any earnings through the 401K will not be taxed until you use the money.
Make the most of your refund
If you have the opportunity to invest or save the money left over after taxes, do it. Check out some additional tools on the Mi Futuro de Popular page and start planning now.
This information has been provided for educational purposes and for your independent consideration. It does not contain, constitute or provide accounting, financial, investment or any other type of advice. This material does not include or account for all factors that may be relevant to your financial needs; it is not to be considered, or viewed, as advice or a suggestion to take (or refrain from taking) any particular action. By providing this information, we assume that you are capable of evaluating it and the general descriptions found here, and of exercising your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates, do not provide legal, accounting or tax advisory services. If legal, accounting or tax advisory services are required, you should seek the services of a qualified professional.
1Service offered by Banco Popular de Puerto Rico. Alerts and Notifications by SMS is a free service that Banco Popular de PR offers to its customers with deposit accounts. Text message or data overage charges may apply depending on your mobile service plan. Check with your service provider for details about your plan. For more details visit https://www.popular.com/mi-banco/online/alertas/.
2Member FDIC. Member Federal Reserve System. Penalty for withdrawals or cancellations before maturity: 180 days of interest. Processing fees for withdrawals and returns of excess contributions: $5 per instrument. Processing fees for transfers to other eligible institutions: $50 per instrument. Certain restrictions apply. Banco Popular offers various investment alternatives. Obtain detailed information to determine which one is right for you. Principal and interest are insured by the FDIC up to the maximum amount permitted by law.
3In IRA Exenta and IRA Flexible, interest earned is exempt from taxes. Does not apply to IRA Regular and Stock Market IRA.
4Investment products offered in Banco Popular retirement plans are not FDIC-insured, are not deposits or obligations, and are not guaranteed by Banco Popular de Puerto Rico; they involve risks, including the possible loss of principal invested. We recommend requesting and reading the prospectuses carefully before investing.
This content was translated with the assistance of Artificial Intelligence (AI).
