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Judging by income tax returns filed last month, salaried taxpayers, but also the self-employed, took home more money in 2023 than in previous tax years.
According to information provided by the Treasury Department, in 2023 returns, the income reported on the W2 receipt, which is used to disclose salary compensation, was $28.131 million. Meanwhile, reported income from professional services, which is typically reported on a 480 return, was $37.75 billion.
In the case of salaries, the $28,131 million announced for Treasury represents an increase of about $1,800 million – or 6.8% – compared to salaries reported in 2022. Likewise, Professional Services reflected growth of $4,808 million, or 14.6% more. This is when comparing the number to what was reported in 2022.
According to the Treasury Department, tax returns for those who work for their employer also reflect an increase in average salary. According to the agency, In returns filed this year, the average salary increased from $29,695 in 2022 to $31,189 in 2023. This represents an increase of $1,494, or 5%.
Regarding the number of workers – who filled out and reported the forms – the Treasury reported that the employee base has seen sustained growth in recent years. The growth in employees reflects an increase of 1.2% in this tax period. This compares to growth of 2.7% in the 2021 tax year and 3.2% in the 2022 tax year.
In total, the Treasury Department received 1,212,328 salaries as of April 30, it was reported. Of these, 933,716 applications were filed through various service providers and another 278,612 applications were filed through the Unified System of Internal Revenue (SURI).
Nearly a million returns with reimbursement
As of April 19, the Treasury Department had paid about $1.8 million in refunds equivalent to 888,267 payrolls. The Treasury Department still has to process 5% of returns filed through April 15, Assistant Secretary of Internal Revenue Angel Pantoja Rodriguez said.
He said: “We can say that more than 90% of the salaries provided have been recovered.”
| Steps to get the incentive refund |
|---|
| · Submit an income tax return |
| · You are a resident of Puerto Rico during the entire 2023 calendar year |
| · Have a net taxable income between $41,500 and $250,000 |
| · Incentives are automatically paid to taxpayers who meet these requirements |
| · The minimum eligible taxpayers will receive is $200 |
| · The Department of Finance will begin disbursing the incentive between the second and third week of May |
| Source: Department of the Treasury |
In addition to refunds, this year's tax cycle for the first time contains a refundable incentive for people with net taxable income between $41,500 and $250,000. This exemption will be added to the EITC, a benefit that most Puerto Rican taxpayers receive.
According to Pantoja Rodriguez, about 669,128 taxpayers claimed about $1,254 million for the EITC. On the other hand, through the refundable incentive, about $250 million will be distributed to about 150,000 taxpayers. The official said that the incentive will begin to be distributed in mid-May.
As of April 30, the agency has received about 52,328 extension requests, which represents a slight decrease from the 53,806 that were requested at the same time last year.
