Yes, you will need to report this Puerto Rican Bank interest as income on your income tax returns.
You can include this PR interest under the 1099-INT section as if you received a 1099-INT. Just make sure that you include this amount in USD.
To enter foreign interest income in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose what I work on” (jump to full list)
- Scroll down the screen until to come to the section “Interest and Dividends”
- Choose “ Interest on 1099-INT” and select “start’
- Select "I'll type it in myself"
- Enter the name of the foreign bank, the amount (in USD) in box
