Adjustments to Income (continued)

IRA Deductions

Puerto Rico residents who contribute money to an IRA can take the IRA deduction adjustment on their U.S. income tax return if:

• The taxpayer has earned income subject to U.S. tax. (Income excluded under IRC 933 is not eligible for an IRA deduction.)
• All other rules for IRA contributions are met.
• The IRA trust account must be in the U.S. (not in Puerto Rico)