If you have a pension from Puerto Rico (not reported on a 1099-R), you can still enter it in the 1099-R interview under Retirement Plans and Social Security. You can indicate on the Enter your 1099R screen, that the payer has a foreign address.
If the payer has a Federal ID number, please enter it. If they don't have one, just enter your own social security number. The form itself does not get transmitted along with your return.
To enter your pension information, please follow these steps:
I received the same form 480.7C; the pension is tax exempt in a Puerto Rico. I reported to the Puerto Rico Internal Revenue Services. However, the solution to enter it using the 1099R do not match with the information in the 480.7C the distribution code are not the same and there is no code to report it as periodic payments.
I agree. The info as outlined on the 480.7c does not match what the 1099-R requires. I receive a pension from Puerto Rico but Iived in Illinois on 2019. I was covered under the ACA and I have to complete the federal return. Did you find a solution on how to enter the 480.7c data into the 1099-R?
Actually I tried following Turbo Tax instructions but it made no sense as Puerto Rico is not a foreign country; therefore, I entered it as a 1099-R as Turbo Tax suggested but I enter it as shown in the table below hoping that the assumptions I made are correct. My taxes were accepted by the IRS and State and the refunds were received; but, it does not guarantee the way are entered bot 480.7C are correct as I cannot find any correct answer neither in the IRS web site.
|480.7C Field||Turbo Tax Field|
|Payer's Information||Location: U.S. Address (Puerto Rico is a US Territory)|
|Employer Identification Number||Federal ID Number|
|16. Cantidad Distribuida / Amount Distributed||1 - Gross Distribution|
|17. Cantidad Tributable / Taxable Amount||2a - Taxable Amount|
|Forma de Distribución / Form of Distribution: Pagos Periódicos / Periodic Payments and 23. Codigo de Distribución / Distribution Code|
7 - Select a code(s) that matches Box 7 on your 1099-R
Box 7 in the 480-7C has nothing to do with what this field ask. Therefore, I used the fields mentioned in the left to determine what to enter in Turbo Tax field 7. Although, Puerto Rico consider Tipo de Anualidad / Plan or Annuity Type to be Privado Calificado / Qualified Private, the only Annuity option which I select from the drop down menu is: D-Annuity payments from non qualified annuities.
My thought is that although is a qualified annuity from a Puerto Rico Government perspective it may not be from an IRS perspective.