Yes, as a resident of Puerto Rico, you are eligible to claim the 2021 Child Tax Credit (CTC).
Starting in 2021, a bona fide resident of Puerto Rico with one or more qualifying children can claim the CTC. The credit is fully refundable for a taxpayer (or spouse, if filing a joint return) who is a bona fide resident of Puerto Rico for the tax year. This means you can receive the credit even if you had no income and paid no U.S. Social Security taxes. The credit amounts are up to $3,600 for a qualifying child under age 6 and up to $3,000 for a qualifying child over age 5 and under age 18, based on the child's age at the end of 2021.
To claim the CTC, you must file a federal tax return with the IRS using one of the following forms: Form 1040-PR, Form 1040-SS, Form 1040, or Form 1040-SR. The requirement for bona fide residents of Puerto Rico to have three qualifying children was removed starting in 2021, so you only need one qualifying child to claim the credit.
Additionally, the IRS has provided simplified procedures to make it easier for some bona fide residents of Puerto Rico to claim the CTC. These procedures apply to individuals who need to file a federal income tax return to claim the CTC in an amount greater than zero for the taxable year 2021. If your income for tax year 2021 is completely exempt from taxation because it is from sources within Puerto Rico, and your modified adjusted gross income is below certain thresholds, you may use these simplified procedures.
In summary, as a bona fide resident of Puerto Rico, you are eligible to claim the 2021 Child Tax Credit by filing the appropriate federal tax return and following the simplified procedures if applicable.
Sources:
§ 24. Child tax credit
Publication 17 (2023)
Procedures to Claim Child Tax Credit Simplified for Puerto Rico Residents
Rev. Proc. 2022-22
