Puerto Rico resident and interest earned from credit union.

[handyman02]

I previously asked this question but may have not included a possible pertinent fact. I am a resident of Puerto Rico with a pension from the mainland. I file my 1040 every year and include the interest I receive from a US bank with no branch on the island. Last year I joined a Credit Union that has branches on the island. When I called the Credit Union regarding the 1099 INT, I was informed that they do not generate one for Puerto Rico residents. Therefore, my question is as follows. Due to the fact that they have branches in Puerto RIco, is the interest generated considered originating from Puerto Rico and exempt from inclusion on my 1040. Note: they do have branches on the mainland including their main office?

[MaryK4]

Yes, if you receive the interest from the Puerto Rico branch, you will include it on the PR and do not include it on your 1040.  

[handyman02]

Thank you very much for your wisdom and insight. I thought as much but wanted to verify with an expert.

[handyman02]

Now the only mystery is why the Credit Union refuses to issue the 1099 INT to residents of Puerto Rico. I am using my year end summary to include the total amount of the dividends on my 1040.

[Janetr61]

Do you report the interest earned in PR to the IRS or do you have to file in PR to report the interest from an American Bank that has branches in PR? The credit Union is Baxter Credit Union. I received a 1099 interest form indicating that it was reported to the IRS.

[RogerD1]

@Janetr61 Are you a bona fide resident of Puerto Rico?  If so, US source income will get reported on your US 1040 income tax return.  Puerto Rican sources of income will get reported on your Puerto Rican return.  More information can be found at this IRS website  Topic 901

[Edited 1-22-2026, 7:51 AM PST] @Janetr61 

[Janetr61]

Thank you Roger. Yes I am a bonafide resident. We moved to PR 2 years- ago where we have our only residence. My concern is that the form received from Baxter credit union is a 1040 interest and not the one for PR residents. I called the credit union and was told that is the only form that they generate..In the 2 years of residency in PR I haven’t file taxes in PR because my retirement income comes from the mainland..

[RogerD1]

@Janetr61 I did find some additional information at this IRS website Topic 901 about your situation.  Since your interest income is considered US source income, you will need to report that on your Federal 1040 return