Enter the amount of income the taxpayer is excluding on the Main Information Sheet, in the Taxpayer Information section of the form. Do not enter this income on Form 1040. Ultimate Tax will use the amount of the exclusion entered on the Main Information Sheet to reduce the standard deduction and certain credits according to IRS instructions.
For more information on excluding Puerto Rico income, see IRS Publication 570, Tax Guide for Individuals with Income from U.S. Possessions and IRS Publication 1321, Special Instructions for Bona Fide Residents of Puerto Rico who Must File a U.S. Individual Income Tax Return.
This information applies to all years of the UltimateTax software.