Resident of US state, but with income from Puerto Rico, received 499R-2/W-2PR listing income, SS & Medicare tax, and tax withheld. How do I indicate this income & tax?

[mythicpilot]

I was told by my employer that PR would charge the maximum rate for tax, regardless of my circumstance.   I am NOT interested in filing a PR return to recoup any overpayment at this time, only in entering the income and taxes paid for the purposes of filing my domestic US return.

[Vanessa A]

Did you live in PR while working there or did you live in the US?  To file your return using TurboTax, you will report all of your income and claim the foreign income exclusion or credit by selecting the following:

• Wages and Income
• Show more next to less common income
• Start next to Foreign Earned Income and Exclusion
• Answer yes to did you make any money outside the US.

As you walk through the entries for your income, TurboTax will help you decide if you can and should take the Income Exclusion or Foreign Tax Credit.

To qualify for the Earned Income Exclusion of up to $112,000 you would have to have lived outside the US for 330days out of 12 months. If you were in the US for 35 days or more during those 12 months, you would not qualify for the exclusion. As you walk through this section, if you qualify, you may also be eligible to claim a housing allowance. Be aware, if you claim the exclusion you cannot take certain credits such as the Earned Income Credit, if you take the foreign earned income exclusion. 

Since you paid taxes to PR, and if you do not take the Foreign Earned Income Exclusion, then you could also qualify to take a tax credit on your US return for taxes paid to PR. 

[mythicpilot]

I was only in PR as a visitor for several weeks, responding to a natural disaster as a FEMA sub-contractor.   Where would I specify the tax credit on the US return for taxes paid to PR?   Does that include only the PR taxes?  How are the SS and Medicare taxes reported?   Thanks again for your time and consideration.

[MaryK4]

The employer filed the Social Security and Medicare taxes with the Social Security Administration so you will get full credit for those for the year.  You will have to file a Puerto Rico tax return to report the income and pay the taxes (just like in the U.S.)- it should be a simple return as it will only include the Puerto Rico income.  You will have to report all of the income on your U.S. tax return, but claim the credit for the taxes paid to Puerto Rico.  @mythicpilot