I am a resident of puerto rico and active duty military so I do not pay federal tax due to my residency of puerto rico. however they are saying I owe 1731 in taxes why?
I am a resident of puerto rico and active duty military so I do not pay federal tax due to my residency of puerto rico. however they are saying I owe 1731 in taxes why?
An Air Force document indicated the following (and would apply to other services also):
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"Territory of Puerto Rico Military Pay Taxes: Resident Service members stationed in Puerto Rico must pay taxes on all military pay earned in Puerto Rico. Puerto Rican Resident Service members stationed outside Puerto Rico do not have to pay income tax to Puerto Rico but must pay federal income tax for money earned outside Puerto Rico."