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If you are a bona fide resident of Puerto Rico Self-Employed Persons Dual-status taxpayer. If you are a resident
for the entire year, your U.S. gross income alien for part of the tax year and a nonresident
doesn't include income from sources within You are self-employed if you: alien for the rest of the year, you are a dual-sta-
Puerto Rico. It does, however, include any in- • Carry on a trade or business as a sole pro- tus taxpayer. Different rules apply for each part
come you received for your services as an em- of the year. For information on dual-status tax-
ployee of the United States or a U.S. agency. If prietor, payers, see Pub. 519.
you receive income from Puerto Rican sources • Are an independent contractor,
that isn't subject to U.S. tax, you must reduce • Are a member of a partnership, or Who Should File
your standard deduction. As a result, the
amount of income you must have before you • Are in business for yourself in any other
are required to file a U.S. income tax return is way. Even if you don't have to file, you should file a
lower than the applicable amount in Table 1-1 Self-employment can include work in addi- federal income tax return to get money back if
or Table 1-2. For more information, see Pub. tion to your regular full-time business activities, any of the following conditions apply.
570. such as certain part-time work you do at home 1. You had federal income tax withheld or
or in addition to your regular job. made estimated tax payments.
Individuals With Income From You must file a return if your gross income is 2. You qualify for the earned income credit.
U.S. Possessions at least as much as the filing requirement See Pub. 596, Earned Income Credit
amount for your filing status and age (shown in
If you had income from Guam, the Common- Table 1-1). Also, you must file Form 1040 or (EIC), for more information.
wealth of the Northern Mariana Islands, Ameri- 1040-SR and Schedule SE (Form 1040), 3. You qualify for the additional child tax
can Samoa, or the U.S. Virgin Islands, special Self-Employment Tax, if: credit. See chapter 14 for more informa-
rules may apply when determining whether you 1. Your net earnings from self-employment tion.
must file a U.S. federal income tax return. In ad- 4. You qualify for the premium tax credit. See
dition, you may have to file a return with the in- (excluding church employee income) were Pub. 974, Premium Tax Credit (PTC), for
$400 or more, or
dividual island government. See Pub. 570 for more information.
more information. 2. You had church employee income of
$108.28 or more. (See Table 1-3.) 5. You qualify for the health coverage tax
Dependents Use Schedule SE (Form 1040) to figure your credit. See Form 8885, Health Coverage
Tax Credit, and its instructions, for more
self-employment tax. Self-employment tax is information.
If you are a dependent (one who meets the de- comparable to the social security and Medicare
pendency tests in chapter 3), see Table 1-2 to tax withheld from an employee's wages. For 6. You qualify for the American opportunity
find out whether you must file a return. You more information about this tax, see Pub. 334, credit. See Pub. 970, Tax Benefits for Ed-
must also file if your situation is described in Ta- Tax Guide for Small Business. ucation, for more information.
ble 1-3. Employees of foreign governments or in- 7. You qualify for the credit for federal tax on
Responsibility of parent. Generally, a child is ternational organizations. If you are a U.S. fuels. See chapter 13 for more informa-
responsible for filing his or her own tax return citizen who works in the United States for an in- tion.
and for paying any tax on the return. If a de- ternational organization, a foreign government,
pendent child must file an income tax return but or a wholly owned instrumentality of a foreign Form 1040 or 1040-SR
can’t file due to age or any other reason, then a government, and your employer isn't required to
parent, guardian, or other legally responsible withhold social security and Medicare taxes
person must file it for the child. If the child can’t from your wages, you must include your earn- Use Form 1040 or 1040-SR to file your return.
sign the return, the parent or guardian must sign ings from services performed in the United (But also see Why Should I File Electronically,
the child's name followed by the words “By States when figuring your net earnings from later.)
(your signature), parent for minor child.” self-employment. You can use Form 1040 or 1040-SR to re-
Child's earnings. Amounts a child earns by Ministers. You must include income from port all types of income, deductions, and cred-
performing services are included in his or her services you performed as a minister when fig- its.
gross income and not the gross income of the uring your net earnings from self-employment,
parent. This is true even if under local law the unless you have an exemption from self-em- Why Should I File
child's parent has the right to the earnings and ployment tax. This also applies to Christian Sci-
may actually have received them. But if the ence practitioners and members of a religious Electronically?
child doesn't pay the tax due on this income, order who have not taken a vow of poverty. For
the parent is liable for the tax. more information, see Pub. 517. Electronic Filing
Certain Children Under Aliens
Age 19 or Full-Time If your adjusted gross income (AGI) is less than
a certain amount, you are eligible for Free File,
Students Your status as an alien (resident, nonresident, a free tax software service offered by IRS part-
or dual-status) determines whether and how
you must file an income tax return. ners, to prepare and e-file your return for free. If
If a child's only income is interest and dividends The rules used to determine your alien sta- your income is over the amount, you are still eli-
(including capital gain distributions and Alaska tus are discussed in Pub. 519, U.S. Tax Guide gible for Free File Fillable Forms, an electronic
Permanent Fund dividends), the child was un- for Aliens. version of IRS paper forms. Table 1-4 lists the
der age 19 at the end of 2020 or was a full-time free ways to electronically file your return.
student under age 24 at the end of 2020, and Resident alien. If you are a resident alien for IRS e-file uses automa-
certain other conditions are met, a parent can the entire year, you must file a tax return follow- tion to replace most of the
elect to include the child's income on the pa- ing the same rules that apply to U.S. citizens. manual steps needed to process paper returns.
rent's return. If this election is made, the child Use the forms discussed in this publication. As a result, the processing of e-file returns is
doesn't have to file a return. See Parent's Elec- Nonresident alien. If you are a nonresident faster and more accurate than the processing of
tion To Report Child's Interest and Dividends in alien, the rules and tax forms that apply to you paper returns. However, as with a paper return,
Pub. 929, Tax Rules for Children and Depend- are different from those that apply to U.S. citi- you are responsible for making sure your return
ents. zens and resident aliens. See Pub. 519 to find contains accurate information and is filed on
out if U.S. income tax laws apply to you and time.
which forms you should file.
Chapter 1 Filing Information Page 7