How you enter a pension from Puerto Rico form 480.7c. PR government pension plan do not provide 1099-R

[gilbertomg]

Puerto Rico 480.7c

[ThomasM125 · Accepted solution]

You have to enter a Substitute form 1099-R. Follow these steps:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Choose the Retirement Plans and Social Security menu option 
4. Choose IRA, 401(k), Pension Plan Withdrawals(1099-R)
5. Choose the enter 1099-R option
6. Choose Change how I enter my form
7. Choose Type it in myself
8. Choose Financial institution or other provider (1099-R)
9. Enter in as much information as you can regarding the pension income 
10. Work through that section until you see Do any of these situations apply to you?
11. Choose I need to file a substitute 1099-R
12. Complete the information requested

[Oliver02]

Thanks for the response. Do you know how (if it can be claimed) to claim the tax withheld (showing in 480.7C form) in the US Federal Tax return? Thanks 

[PattiF]

You can enter the tax withheld from your pension in the US Federal Tax return by following these directions.

To enter the federal tax withholding:

• Go to Federal on the left side of TurboTax Online
• Click on Deductions and Credits at the top of the page
• Scroll down to Estimates and Other Taxes Paid
• Select Other Taxes Paid and - click the Start button
• Follow the prompts

Please see this TurboTax help article for information.

@Oliver02 

[12StringJW]

Patti F:  I don't think your answer is correct.  The questioner is asking how he/she should reflect the Puerto Rican taxes paid on the Puerto Rica pension.  I believe those taxes would be reflected as Foreign Taxes paid.  I believe Form 1116 is required for this, or at least report them on Schedule A.

[DaveF1006]

Yes, you are correct. Here is how to enter.

1. Open (continue) your return in TurboTax
2. Go to federal>deductions and credits>estimate and other taxes paid
3. Foreign taxes >start
4. When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation
5. If you select Take a Credit:
   • Continue through the screens until it asks for income type. Here select passive income.
   • When you reach the screen Country Summary, select Add a Country. Add Puerto Rico
   • Other Gross income enter the gross amount of the pension.
   • Don't enter the expenses as this may negatively impact your Foreign Tax paid.
   • Foreign losses. You may wish to leave this blank.
   • Foreign taxes paid. Select the option that mentions foreign taxes paid on pensions etc.
   • Be sure to indicate the date these were paid
   • Answer the questions about your foreign income, taxes, and expenses on the following screens
   • When finished, you'll be taken back to the Country Summary screen. If everything looks correct, continue
   • Finish out the remainder of the interview.

• Once this section is complete, a Form 1116 will be generated in the return and the foreign taxes paid will be properly reported.

 @12StringJW 

@ Oliver02