DanielV01
Expert Alumni

Get your taxes done using TurboTax

It's a double-entry.  Since you are not a bona fide resident of Puerto Rico, you must, as you indicate, report this income to the United States for taxation.  And while Puerto is a U.S. territory whose economy is on the U.S. Dollar, it is considered Foreign Income for tax purposes.  While the form layout is different, there are only two boxes that matter for reporting in TurboTax (although amounts in other boxes may be necessary to include in some of the additional questions asked if the amounts are not 0).  Box 7 on Form W2PR are the wages.  This number is entered in the Foreign Wages section.  This FAQ will aassist in showing where to enter this in TurboTax:  https://ttlc.intuit.com/replies/3290703

Box 13, on the other hand, were your taxes withheld.  It is on this amount that you have a potential credit.  This credit is called the Credit on Foreign Taxes Paid.  Please see this FAQ for more information on how to enter this information into TurboTax also:  https://ttlc.intuit.com/replies/3302405

This is what you can do in TurboTax.  However, you also wish to file the W2PR on a Puerto Rico return to ensure you paid in the correct amount to Puerto Rico or if you are entitled to a refund.  That return is not available in TurboTax, but you can find more information at the following website:  http://www.portocapital.com/department-of-treasury-of-puerto-rico-porto-capital/ (Click on link.)

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