20 CFR § 404.1089 - Figuring net earnings for residents and nonresidents of Puerto Rico.

---
identifier: "/us/cfr/t20/s404.1089"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 404.1089 - Figuring net earnings for residents and nonresidents of Puerto Rico."
title_number: 20
title_name: "Employees' Benefits"
section_number: "404.1089"
section_name: "Figuring net earnings for residents and nonresidents of Puerto Rico."
chapter_name: "SOCIAL SECURITY ADMINISTRATION"
part_number: "404"
part_name: "FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950-  )"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
cfr_part: "404"
---


# 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.