San Juan, Puerto Rico – The Puerto Rico Department of Treasury announced today that thousands of Puerto Rican families will receive significant tax benefits in 2024 due to an inflation adjustment in the Earned Income Tax Credit (EITC).

The EITC is estimated to reach $1.432 billion for the 2024 tax year, marking a 10% increase from the previous year.

“As a measure to incentivize work and provide relief to the working class, nearly $1.303 billion in EITC benefits were distributed in the 2023 tax year, benefiting approximately 700,000 working families,” said Treasury Secretary Nelson J. Pérez Méndez. “The benefit received an additional increase of approximately $240 million in the previous tax year due to an inflation adjustment, and we anticipate an additional increase of about $129 million next year.”

Pérez emphasized that the EITC for the upcoming tax year will be adjusted based on the taxpayer's Adjusted Gross Income (AGI) and the number of dependents, with a maximum credit of up to $7,563.

The Department of Treasury also distributed $205.26 million in economic incentives to 152,044 families this year, representing a total benefit of over $1.5 billion for more than 850,000 workers.

The Internal Revenue Bulletin details that an inflation adjustment to the EITC is equivalent to 15% of the Adjusted Gross Income (AGI).

For example, an individual taxpayer without qualified dependents, with an AGI greater than $18,610 but not exceeding $30,240, will have their maximum credit of $1,745 reduced by 15% of the amount their AGI exceeds $18,610.

The specific credit amounts and income eligibility thresholds vary based on filing status (single, married filing jointly) and the number of dependents. Detailed calculations are provided in the Internal Revenue Bulletin.

These increased tax credits are expected to provide significant financial relief to working families in Puerto Rico and stimulate the local economy.