Check Your Act 60 Dividend Tax Compliance Fast

The basic rule for Act 60 is simple: dividends from Puerto Rican companies are 100% tax-exempt in PR. But here’s the catch many people miss: dividends from U.S. companies are still taxable by the IRS. If you own shares in a company like Tesla or Amazon, those dividends are U.S.-sourced income. Being an Act 60 resident doesn't change that. Our quick check is designed to scan your return for U.S.-sourced dividends that may have been incorrectly reported as tax-free. It’s the fastest way to spot a major compliance red flag. With the market for AI-powered compliance tools growing over 80%, more decree holders are turning to automated checks for instant clarity.

For the U.S. dividends you do have to pay tax on, the rate can be high (ordinary income) or low (capital gains). The lower rate applies if the dividend is "qualified." The main test is the holding period: did you own the stock for more than 60 days around the payment date? Many investors trade frequently and accidentally disqualify their dividends, leading to a surprise tax bill. You don't need to pay a CPA thousands of dollars for this analysis. Our tool can help identify dividends that might not meet the qualified criteria, flagging them for your review instantly. It’s a simple check that can help you understand your true federal tax exposure.

Most decree holders don't have access to affordable compliance advice and make honest mistakes. The most common errors are assuming all dividends are tax-free, failing to track holding periods for qualified dividends, and misunderstanding sourcing for ETFs. Traditional CPA firms can charge $5,000 or more for a review that catches these. Our platform provides an accessible first step. By checking for these specific, frequent errors, we give you the power to assess your own risk level quickly and affordably. Get the peace of mind that comes from a quick, targeted compliance check-up.