MarineFly

Anyone out there commute from Puerto Rico?

How is your pay taxed? US or PR?

Would like some more details about life on the island as a commuter....

E

SonicFlyer

You should research the PR Act 20 and Act 22 ;-)

https://en.wikipedia.org/wiki/Act_22_of_2012

MarineFly

I am looking at Act 60 (former Acts 20/22) but it is unclear how being an airline pilot, domiciled in the US and spending lots of time there on reserve and trips, would be treated vis a vis the residency and closer connection tests.
Looking for anyone who has any experience with PR / US taxes generally, commuting or Act 60 / 22/ 20 that can shed light on this issue!

Thanks

KJENY

I’ve been commuting from PR for 3 years. Everything will depend on the base that you’re commuting to. EWR had north of 10 flights a day pre COVID and rarely had to fight for the jumpseat. SJU has employee parking ($108 a month) and KCM.

PR taxes - we do not pay federal taxes. We do pay a PR state tax, above $60,000 annual and you’ll pay 30%. PR property tax is close to zero.

Act 20/22 - is for people with a high net worth and want to save on capital gain tax. The other portion of this applies to business owners. From people I know that have signed up for it, they say it’s almost impossible to get approved at this point.

SonicFlyer

If you get on FB there are groups of people doing the Act 60 / 22 / 20 thing and have a ton of experience, including professionals, who can guide you on the issue.

MarineFly

From people I know that have signed up for it, they say it’s almost impossible to get approved at this point.

Are you referring to one or all parts of the Act 60 at this point that are difficult to get approved?

hindsight2020

Airline pilot? You don't qualify for Act 60 homey. Do like us natives do and either pay those local income tax rates or just move to the mainland.

Signed,
A PR native gentrified by said economic realities.

P.S. The good news is that you can live a pretty decent part-year snowbird with low property costs an cheap travel back to the island courtesy of your employer. As noted, 33% above 60K is a killer. Higher income tax burden than CA + federal, believe it or not (mostly due to the low 60K threshold triggering the max rate). PR hates middle class incomes, which is why my home has lost half a million people in a decade, yours truly included (though I left in the earlier wave, 2 decades ago). Still have parents and real estate back home, and likely will retain some footprint, but never full time. Not with those personal income tax tables. Non-starter. It is what it is.

MarineFly

What makes you say I wouldn't qualify for Act 60 [Act 22]... homeslice?