I provided service for a Company in Puerto Rico and just received a form 480.6C and would like to know how to input the information here in Turbo Tax.

[gvp2614]

My original federal tax return was accepted and shows me an amount to be refunded.

After including form 1116, my amended tax return is accepted but shows no amount to be refunded or paid.

The original refund was not affected due to a new form 1116.

Why Turbotax is saying I have no refunds? It makes no sense.

Same situation for my CA refund. After adding form 1116, shows me 0 refunds.

Considering that CA return had no changes, should I really mail my new amended return?

[MayaD]

Make sure you've already entered all your foreign income.

To qualify for the credit, you must have paid, accrued, or owe taxes on foreign income that is also subject to U.S. income tax. This foreign tax must be an income tax or a tax in lieu of an income tax that is imposed on you and is a legal and actual foreign tax liability.

If you entered all your information correctly and CA return had no changes, you don't need to mail your amended return. 

[Edited 3/8/2022, 11:14am PST]

[gvp2614]

Hi @MayaD , thanks for your help!

Sorry but it seems maybe you did not understand the first part of my last post. 

I am sure I did everything correctly and it caused no changes on my refunds but now Turbo Tax is showing me 0 as a refund and this is impossible.

Form 1116 didn't cause any changes in the amounts to be refunded.

So my questions are: 

1 - what happened with my original refund amounts?

2 - The 0 refund Turbo tax is showing me is only about the amendment I have done?

3 - The original refund is still there, right?

I am curious:

Is there a way to go back and delete an accepted amended return?

Thanks a lot!

[AliciaP1]

When you put in the information to process the amendment, the refund showing on your original tax return is considered funded and taken into account against any new amounts you should owe or be refunded.  If your new amount does not show an amount due nor a new refund amount, the amendment results in a net 0 tax effect.

If you have not already received your original refund, you still will unless the IRS adjusts your original return for some reason. 

@gvp2614

[corey946]

How did you get your money. I worked in Puerto Rico in the year 2017 and 2018 and filed all the needed paperwork, but never received anything. My CPA did all the needed paperwork. Still have never received anything 

[gvp2614]

Dear community,

Here I am again with questions regarding this topic.

I do have the same situation of 2022. I worked for the same company in PR and received form 480.6C again.

I just filed my PR income tax and had 74% refund of the tax paid.
My question is: Should I inform this on the US income tax? I tried but the system is giving me an error saying that my foreign income gross amount is higher than all my US gross income and it really is because I worked 7 months for this PR company and only 5 months in the US. So I don't know how to fix it. The system is asking me to enter an adjustment and I don't have any adjustments to enter.  Also, when I filled the form 1116, I just entered the income and did not find where to enter the tax paid. So I am really lost here and don't know what to do.

So, resuming: I received a 480.6C and filed the PR income tax, and will receive a refund of around 74% of the paid tax. Am I required to enter this information on US income tax form 1116? If so, where to enter the tax paid and refund from the PR income tax?

Please help me.

I really appreciate it.

Thanks.

[gvp2614]

Hi DMarkM1,

Sorry to bother you again with this, but just got into the same situation in 2023.

Another form 480.6C was issued and I filled out the PR income tax and will get a refund.
Do I need to inform any of this on the US income tax? In case it is not mandatory, I will move forward without informing it.

In case I have to inform it, I suppose I need to inform on the FTC form 1116 but not sure how to do it.

As a test, I tried to enter the Gross amount and tax paid but don't know which fields I should enter the amounts.

Please help me.

Many thanks.

[DianeW777]

Yes. Assuming you were working in the United States (US) and not in Puerto Rico (PR), Form 480.6C is intended for non-residents of Puerto Rico. Since this was for services you performed you should enter the income as self employment using Schedule C. You do not need to enter the document itself.

Follow the steps here to enter your income without using the Form 480.6C.

• Open your TurboTax return > Search (upper right) > Type schedule c > Press enter > Click the Jump to link.
• Select to Edit beside your business (or add) > Select Income > Select Other self-employed income, includes 1099-K and cash...
• Enter the total proceeds from your Form 480.6C
• Continue to complete your self employment income and expenses

You must file a tax return for Puerto Rico since you are not a bona fide resident for 2022 (which you have already done), along with a US tax return.  The foreign tax credit you will be allowed to use on your US return will provide a credit for the tax you paid Puerto Rico by reducing your total tax (the tax liability and not the withholding on the PR return).

If you are a US citizen or resident alien, but not a bona fide resident of Puerto Rico during the tax year, you must generally file the following returns. 

• A Puerto Rico tax return reporting only your income from Puerto Rico sources. Self employment for services performed in Puerto Rico, whether for a private employer, the U.S. government, or otherwise, are income from Puerto Rico sources.
• A U.S. tax return reporting income from worldwide sources. Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rico income that is subject to Puerto Rico taxes and not exempt from U.S. taxes.

Since you are not considered a bona fide resident of Puerto Rico, you want to prepare the Puerto Rico return first if possible as you have done.  This is to determine the US Credit.  Your credit is not based on tax withheld, but rather your tax withheld minus refund or in addition to additional tax due.  

TurboTax does not support a Puerto Rico return. You will have to prepare your return from the Puerto Rico website. It is in Spanish but most computer software offers a translation if needed.

• Where do I enter the foreign tax credit (Form 1116)?

Publication 570 from the IRS will give you more information about this.  Please update here if you need further assistance.

@gvp2614 

[frnak1964]

i need help filling a 480.6 sp from puerto to rico can you guide me  you can assist me filling this form here in turbo tax

[JohnW152]

How you enter the income depends on what type of income is reflected on your Form 480.6. 

As in, interest, dividends, payment for services you performed, etc.

If it's interest, for example, you'll enter it like regular interest income.  See the TurboTax Help article What if I didn't get a 1099-INT from my bank? for entry guidance. 

You can post back with the income type for further assistance, if you need to.

@frnak1964