18491: Bona Fide Residents of Puerto Rico and the Standard Deduction Calculation

When are members of the military considered bona fide residents of Puerto Rico? Is the standard deduction calculation available in Drake Tax?

Active military members based in Puerto Rico are classified as bona fide residents of Puerto Rico if any of the following conditions apply to the taxpayer during the tax year:

• Meet the presence test
• Do not have a tax home outside Puerto Rico
• Do not have a closer connection to the United States or to a foreign country than to Puerto Rico

The adjustment calculation regarding the Standard Deduction for bona fide residents of Puerto Rico is not supported in Drake Tax. The preparer must calculate the Standard Deduction separately and complete the return outside of Drake Tax.

Refer to Publication 1321 for a further explanation of the Standard Deduction calculation.