Child Tax Credit for Puerto Rico Families

The Child Tax Credit is a federal benefit. For years, Puerto Rico families could only get it if they had three or more children. That changed with the American Rescue Plan Act: since tax year 2021, one qualifying child is enough.

Most families on the island don't owe federal income tax, so what they receive is the refundable part of the credit, called the Additional Child Tax Credit (ACTC). You claim it with the IRS, not with the Departamento de Hacienda (Puerto Rico's Treasury Department, "Hacienda"), using Form 1040-SS. This guide is based on the 2025 Form 1040-SS instructions and the IRS adjustments for 2026.

How much you can get

The 2025 federal law (One Big Beautiful Bill Act) set the credit at $2,200 per child and adjusts it for inflation starting in 2026. For a Puerto Rico family that files only Form 1040-SS, the number that matters is the $1,700 refundable maximum per child. Your actual credit can be lower, depending on what you paid into Social Security and Medicare, as you'll see below.

Who can claim it

Under the 2025 Form 1040-SS instructions, you can claim the ACTC if:

• You were a bona fide resident of Puerto Rico during the year. We explain this in Puerto Rico residents and the IRS.
• You had Social Security and Medicare withheld from your wages or you paid self-employment tax.
• No one can claim you as a dependent on a federal return.
• You have one or more qualifying children.
• You, or your spouse if you file jointly, have a valid Social Security number.

If you were not a bona fide resident, or if you have to file Form 1040 for other reasons, the credit is figured on Schedule 8812 of Form 1040, not on Form 1040-SS.

Who is a qualifying child

For 2025, the child must meet all of these requirements:

1. Be your son, daughter, stepchild, officially placed foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them, such as a grandchild, niece or nephew. An adopted child is treated as your own child.
2. Be under age 17 on December 31 of the year.
3. Be younger than you, or permanently and totally disabled.
4. Not have provided more than half of their own support.
5. Have lived with you for more than half the year.
6. Not file a joint return, unless it's only to claim a refund.
7. Be a U.S. citizen, U.S. national or U.S. resident.

The Social Security number rule starting in 2025

Starting with tax year 2025, the Form 1040-SS instructions require a valid Social Security number. That means one that is valid for work and issued by the Social Security Administration before the return's due date, including extensions:

• For you. If you file jointly, only one spouse needs one. The other spouse needs a Social Security number or an ITIN issued no later than that date.
• For each child. If a child doesn't get the number in time, you can't use that child for the credit that year, on either the original return or an amended one.

How it's figured on Form 1040-SS

Part II of Form 1040-SS figures the credit in three steps:

1. Maximum for your children. Number of qualifying children × $1,700.
2. High-income limit. You figure your modified adjusted gross income, including Puerto Rico income. If it's more than $200,000 ($400,000 on a joint return), the credit is reduced by 5% of the excess, rounded up to the next multiple of $1,000.
3. Social Security contribution limit. The credit can't be more than the total Social Security and Medicare withheld from you, as shown on your Forms 499R-2/W-2PR (and your spouse's, if you file jointly), plus half of the self-employment tax you figure on the same Form 1040-SS.

The last step is the one that matters most in Puerto Rico. That's why two families with the same number of children can receive different amounts.

You can figure your self-employment tax with the self-employment tax calculator.

Other dependents. The form also adds $500 for each other dependent, such as a child age 17 or older, but only to figure the high-income limit. You can't receive that credit on Form 1040-SS.

How to claim it

1. Gather your documents: everyone's Social Security numbers, your Forms 499R-2/W-2PR and, if you're self-employed, your business income and expenses.
2. File Form 1040-SS. You can file it electronically. It's also available in Spanish, as Form 1040-SS (sp). List each child in Part I and complete Part II. If you file on paper, include a copy of your Forms 499R-2/W-2PR.
3. Choose direct deposit for your refund.
4. File on time. For tax year 2025, the due date was April 15, 2026. For tax year 2026, the general rule is April 15, 2027.

When the money arrives. Under the 2025 instructions, refunds that include the ACTC can't be issued before mid-February, and the wait applies to the entire refund.

If you missed it. You can file a late Form 1040-SS to claim the credit, but the IRS has a time limit for issuing refunds, generally three years. If the credit was denied in a prior year for a reason other than a math error, you may need to attach Form 8862.

What about your Hacienda return

You don't claim the federal credit on your Hacienda return. These are two separate filings: Form 1040-SS with the IRS, and the income tax return (planilla, Form 482) with Hacienda. Puerto Rico has its own credits, such as the earned income credit. Read tax credits and how to file your return.

787TAX is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the CRIM or the IRS. This page is general information, not tax or legal advice. Example figures are hypothetical. Found an error? Tell us.