---
kind: "section"
citation: "20 C.F.R. § 404.1089"
title: "20"
number: "404.1089"
heading: "Figuring net earnings for residents and nonresidents of Puerto Rico."
url: "https://uscodex.org/cfr/20/404.1089"
---

# §404.1089. Figuring net earnings for residents and nonresidents of Puerto Rico.

- (a) **Residents.** If you are a resident of Puerto Rico, whether or not you are an alien, a citizen of the United States, or a citizen of Puerto Rico, you must figure your net earnings from self-employment in the same manner as would a citizen of the United States residing in the United States. In figuring your net earnings from self-employment you must include your income from sources in Puerto Rico even though you are a resident of Puerto Rico during the entire taxable year.
- (b) **Nonresidents.** A citizen of Puerto Rico, who is also a citizen of the United States and who is not a resident of Puerto Rico must figure net earnings from self-employment in the same manner as other citizens of the United States.

## Notes

### Authority

Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)) and 48 U.S.C.1801.

### Source

Source: 45 FR 20075, Mar. 27, 1980, unless otherwise noted.