I am a US resident and received IRA distributions from Puerto Rico. how do I reflect that in my US return?

[LindaS5247]

Can you clarify how was this IRA Distribution reported to you?  Did you get a Form 1099-R or a Form 480.6A?

[Odnanref1952]

Thank you for your response.  I got a form 480.7 from the Puerto Rico bank.

[PattiF]

You would enter the IRA distribution as a 1099-R. 

To enter form 1099-R:

• Click on Federal Taxes
• Click on Wages and Income
•  Click on I'll Choose what I work on
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the Start Button

For the Federal ID number, use the Employer Identification Number.

For Box 7, use code 7 and check the IRA/SEP/SIMPLE box to indicate that this is an IRA distribution

@Odnanref1952 

[Odnanref1952]

Thank you for your help.

[Odnanref1952]

Thank you.  I appreciate your help.

[sts9292]

I have the same situation.  Thanks for the guidance on the issue.  My question is how do I claim in my US tax return the taxes I paid in Puerto Rico when I filed my taxes there?  My only income in Puerto Rico was the traditional IRA distribution.  

Regards,

[AmyC]

All foreign tax paid is entered in the same spot. To report the foreign tax paid on your pension for foreign tax credit:

1. Enter foreign tax credit in the search box at the top of the page and click the Jump to link
2. Select Yes you paid foreign taxes
3. Continue through the screens regarding foreign interest and dividends
4. Select yes that you have reported all your foreign income already in TurboTax
5. Deduction or Credit? Most people choose the credit since so few itemize deductions. You can try it both ways and determine what is best for you. Select an option.
6. Answer question about the Simplified Limitation Election
7. Choose income type 
8. Add the name Puerto Rico
9. Enter description - traditional IRA distribution or similar
10. Enter Income amount that you previously reported in another section of TurboTax 
11. Enter your taxes you paid on your foreign pension in the box "Other income"
12. Continue through the foreign tax credit screens until done.

@sts9292 

[Caribe]

I have an additional question related to this. Once the Hacienda 20% withholding has been taken from the 401K distribution, can the taxable funds be rolled over into US-based IRA if the benefit plan is qualified under Internal Revenue Cods section 401(a)? I was told that once the 20% required withholding has been withheld by Hacienda, if taxable funds are rolled over to a US 401K, no further tax payments are required to be made to Puerto Rico and no additional Puerto Rico income tax filing is required. Thank you.