IRS Form 1040-SS – IRS Form, Instructions, Pubs 2026

IRS Form 1040-SS – In the complex world of U.S. taxation, certain forms cater specifically to unique situations, such as self-employment income for residents of U.S. territories. IRS Form 1040-SS, officially titled the U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), is a critical document for individuals in places like Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. This form allows eligible filers to report self-employment earnings, calculate and pay self-employment taxes, and potentially claim valuable credits like the Additional Child Tax Credit (ACTC). If you’re a self-employed professional, farmer, or household employer in these areas, understanding Form 1040-SS is essential to comply with IRS requirements and maximize your benefits.

This comprehensive guide covers everything you need to know about Form 1040-SS for the 2025 tax year, including who must file, how to compute taxes, claiming credits, filing deadlines, and more. We’ll draw from official IRS resources to ensure accuracy. For the latest form, you can download the PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f1040ss.pdf.

What Is IRS Form 1040-SS?

Form 1040-SS serves multiple purposes for residents of U.S. territories who aren’t required to file a standard U.S. income tax return like Form 1040. Primarily, it’s used to:

  • Report net earnings from self-employment (SE) to the United States.
  • Calculate and pay self-employment tax on those earnings, which funds Social Security and Medicare programs.
  • Allow the Social Security Administration (SSA) to determine your eligibility for future benefits, regardless of your age or current benefit status.

The form is particularly relevant for bona fide residents of the U.S. Virgin Islands (USVI), Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), and Puerto Rico. Unlike Form 1040, which is for general U.S. individual income tax returns, Form 1040-SS focuses on self-employment income and does not require reporting all types of income unless related to specific credits or taxes.

Key components of the form include:

  • Part I: Self-employment tax calculation.
  • Part II: Additional Child Tax Credit for bona fide Puerto Rico residents.
  • Attached schedules like Schedule SE for detailed SE tax computations.

Recent updates for the 2025 tax year include adjustments to the maximum income subject to Social Security tax ($176,100) and optional methods for figuring net earnings (up to $7,240). Additionally, Puerto Rico residents no longer need three qualifying children to claim the ACTC; one or more suffices.

Who Needs to File Form 1040-SS?

Not everyone in U.S. territories must file Form 1040-SS. You should file if you meet these criteria:

  • You are a bona fide resident of Guam, American Samoa, USVI, CNMI, or Puerto Rico.
  • You are not required to file Form 1040 with the United States.
  • You (or your spouse if filing jointly) have net self-employment earnings of $400 or more, or church employee income of $108.28 or more.

Even if you don’t meet the earnings threshold, you may need to file to:

  • Report household employment taxes (using Schedule H).
  • Pay taxes on unreported tips, wages, or group-term life insurance.
  • Withhold Additional Medicare Tax.
  • Claim excess Social Security tax withheld.
  • Claim the Additional Child Tax Credit (for Puerto Rico residents).

Specific groups include:

  • Self-employed individuals, sole proprietors, farmers, or professionals.
  • Ministers, members of religious orders, or Christian Science practitioners (unless exempted via Form 4361).
  • U.S. citizens employed by foreign governments or international organizations.
  • Residents living abroad who still owe SE tax (unless covered by a social security agreement).

Bona fide residents of Puerto Rico can file Form 1040-SS solely to claim the ACTC, even without SE tax liability. Residents of other territories may claim the ACTC on their local territory returns instead. If you’re not a bona fide resident of Puerto Rico, you might need to file Form 1040 or 1040-SR for credits like the Child Tax Credit (CTC) or Other Dependent Credit (ODC).

How to Compute Self-Employment Tax on Form 1040-SS?

Self-employment tax covers Social Security and Medicare contributions that would otherwise be withheld from wages. The rate is typically 15.3% on net earnings, but only the Social Security portion (12.4%) applies up to the wage base limit of $176,100 for 2025.

Steps to compute:

  1. Report your business income and expenses on Schedule C (for nonfarm businesses) or Schedule F (for farming).
  2. Calculate net earnings from self-employment on Schedule SE (Form 1040), Part I.
  3. Enter the SE tax amount from Schedule SE, line 12, on Form 1040-SS, Part I, line 3.
  4. Combine multiple businesses on one schedule; file annually.

Optional methods on Schedule SE, Part II, allow you to figure net earnings up to $7,240 if actual earnings are low, helping qualify for benefits. For household employers, use Schedule H to report taxes on wages paid to employees.

Claiming the Additional Child Tax Credit (ACTC) for Puerto Rico Residents

One of the standout features of Form 1040-SS is the ability for bona fide Puerto Rico residents to claim the ACTC in Part II. This refundable credit can provide up to $1,700 per qualifying child under age 17 as of the end of 2025.

Eligibility:

  • You must be a bona fide resident of Puerto Rico.
  • The child must have a valid Social Security Number (SSN) issued by the SSA before the return’s due date (including extensions).
  • For joint filers, at least one spouse needs a valid SSN; the other can have an SSN or Individual Taxpayer Identification Number (ITIN).

How to claim:

  1. List qualifying children (name and SSN) on Part I, line 2.
  2. Report all income, including Puerto Rico sources, for modified adjusted gross income (AGI) on line 3.
  3. Multiply the number of children by $1,700 (line 2).
  4. Apply income thresholds and limitations, incorporating CTC ($2,200 per child) and ODC ($500 per other dependent) in calculations, even if not claimable on this form.
  5. Attach a statement for other dependents with name, TIN, and relationship.
  6. Enter the ACTC on Part I, line 10.

Refunds involving the ACTC may be delayed until after mid-February 2026. Note: Residents of other territories should check local tax offices for ACTC claims.

Filing Deadlines and Extensions for Form 1040-SS

For calendar-year taxpayers, the standard due date is April 15, 2026. Fiscal-year filers have until the 15th day of the fourth month after their year ends.

Territory-specific extensions:

  • Puerto Rico residents: Automatic 6-month extension to October 15, 2026, by filing Form 4868 by April 15, 2026 (doesn’t extend payment deadline).
  • American Samoa, CNMI, Guam, USVI residents: Automatic 2-month extension to June 15, 2026, if outside the U.S. and Puerto Rico on the due date (attach statement); additional 4 months via Form 4868 by June 15, 2026.

Disaster relief may extend deadlines—check IRS Publication 547.

Territory Initial Due Date Automatic Extension Max Extension
Puerto Rico April 15, 2026 6 months (Oct 15) 6 months
Other Territories April 15, 2026 2 months (June 15) if abroad 6 months total

Where and How to File Form 1040-SS?

Mail your return to:

  • With payment: Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303.
  • Without payment: Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215.

Use IRS-designated private delivery services for timely filing. Electronic filing isn’t detailed for Form 1040-SS, so paper filing is standard. Attach all required schedules and statements.

For territory-specific resources:

  • American Samoa: American Samoa Government Tax Office.
  • CNMI: Division of Revenue and Taxation.
  • Guam: Guam Department of Revenue and Taxation.
  • Puerto Rico: Departamento de Hacienda.
  • USVI: Virgin Islands Bureau of Internal Revenue.

To complete Form 1040-SS, you may need:

  • Schedule C (Form 1040): Business profit/loss.
  • Schedule F (Form 1040): Farm income.
  • Schedule H (Form 1040): Household employment taxes.
  • Schedule SE (Form 1040): SE tax calculation.
  • Form 4868: Extension request.

Helpful publications:

  • Pub. 225: Farmer’s Tax Guide.
  • Pub. 334: Tax Guide for Small Business.
  • Pub. 570: Tax Guide for Individuals With Income From U.S. Possessions.

Common Mistakes to Avoid and Tips for Filing

  • Don’t forget to include all income sources for AGI when claiming credits.
  • Attach required statements for dependents.
  • Pay any owed taxes by the due date to avoid penalties, even with an extension.
  • Double-check SSN/ITIN requirements for credits.
  • Consult a tax professional if your situation involves exemptions or international agreements.

Remember, while this guide provides an overview based on current IRS information, tax laws can change. Always verify with the IRS website or a qualified advisor for personalized advice. Filing accurately ensures you receive the benefits you’re entitled to, like Social Security credits and tax refunds. Download Form 1040-SS today and stay compliant for the 2025 tax year.