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Looney1966
Returning Member

Puerto Rico Income

I worked in Puerto Rico 5 years ago, but am a US Citizen and have not worked for that company for 4 years.  I received a 2021 480.7C from my former company that I worked for in Puerto Rico.  They did withhold 20% taxes from it.  My question is

  1. Do I have to include it on my 2021 1040(I am currently on extension and trying to get my taxes finished up).
  2. There is a code B on it, if I have to include it on my taxes, what do I use on as the distribution code?
  3. Since they took out Puerto Rico tax, where do I enter that, if it does have to be entered on my 2021 tax return.  

I am extremely confused on what to do with this form and do not want any issues with the IRS if I am supposed to add to my 2021 tax return.

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3 Replies

Puerto Rico Income

Looney1966
Returning Member

Puerto Rico Income

No I have not.  I don't have one?

Quasirobo
New Member

Puerto Rico Income

Puerto Rico should give you a tax credit for how much you pay to the IRS that year if you're a resident of Puerto Rico. So you shouldn't be taxed on that twice.

 

Unclear if you're a resident of PR or not here. There are different implications then. This site has info on specific tax incentives in Puerto Rico which don't apply to you, but also some general info about how tax is treated in PR vs the mainland as well: https://act60.co/t/what-is-bona-fide-residency-and-is-it-a-requirement-of-act-60/112

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