Yes, you may receive a Foreign Tax Credit for the tax paid to Puerto Rico. Here is how to get started.
- Open Turbo Tax
- Go to federal>deductions and credits>estimate and other taxes paid
- Foreign taxes >start
- Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified election
- Answer the questions in the next screens until you reach a screen that talks about income type. This will be the general category of income. if you have more than one country, you will add that later.
- Next screen is where you add the country your foreign income was earned in.
- Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
- You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2022 or you won't get the foreign tax credit and will show up as an error in your return
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