Federal Income Tax Withholding changes for Puerto Rico

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Federal Income Tax Withholding stopped for legal resident Puerto Rico military members

Effective Nov. 1, 2017, the military pay systems were changed to no longer withhold federal income tax from the pay of members who claim a legal residence of Puerto Rico. On that date, the systems began withholding of Puerto Rican taxes in compliance with current Internal Revenue Service regulations.

Members who claimed Puerto Rico as their legal residence prior to Nov. 1, 2017, may wish to consult with their legal assistance office, military tax center, or a competent tax professional to determine any impact to personal income taxes for prior tax years.

Page updated May 29, 2018