The filing status for the tax clients will be a MFJ. The husband is currently working for FEMA in Puerto Rico. He has filed Form 482 (Individual Income Tax Return) and is due to get a substantial refund. I am aware that the Puerto Rico income must be reported on the MFJ return as worldwide income. On the income document from Puerto Rico, taxes were withheld in block #13. Is the amount in block #13 federal withholdings or Puerto Rico providence taxes? In my mind, all of the income earned while working in Puerto Rico does not qualify for Form 2555 or Form 1116. The client paid Puerto Rico $17121.00 of the $8303.53 withheld from his wages. The remaining was the refund. I would appreciate any good advice for this matter. Thanks.
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Tax withheld on a W-2PR box 13 would be Puerto Rico tax.
I'd start with Publication 570 page 13 which explains which forms need to be filed based on residency status. How it gets reported differs depending on whether they are a bona fide resident of PR. Probably they are not and it will be taxed to the US, but they can use Form 1116.Last edited by David1980; 03-19-2019, 01:09 AM. -
I was about to post the same question. My client had wages of 37,717 while in Puerto Rico and tax withheld of 14,357. Just seems like a lot of withholdings. I've never done a return like this so looking for any help I can get.Comment
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Ok so I went to Pub 587 and it's business use of the home. Page 13 talking about day care providers. So I'm thinking this is not the correct Pub I need to reference..Comment
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Sorry, publication 570.Comment
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I have heard that the PR return must be prepared by a "Hacienda" preparer. HRB has them. FL probably has a bunch. Then you take the PR return with that income and PR taxes paid on it and start the US 1040. Just what I read on this and other forums. Search your favorite forums and your research software for details of how it works in your software.Comment
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A client needs to file a puerto rico tax return (Non Bona fide Form 482). This is good information and contains some of the same issues I am having issues with.
Can anyone share their final outcome on how they filed the Puerto Rico return? I go to publication 570 and it give addresses to mail forms to but everything else I read states it is required to be e-filed. My software (Drake) does not support Puerto Rico. After my research here are my specific questions:
Does a Puerto Rico return require a "Hacienda" preparer ?
Can I mail the return as specified in pub 570?
If software does not support what is a good software/program to e-file the Puerto Rico Return?
Thanks for any insight/advise you may have.
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A client needs to file a puerto rico tax return (Non Bona fide Form 482). This is good information and contains some of the same issues I am having issues with.
Can anyone share their final outcome on how they filed the Puerto Rico return? I go to publication 570 and it give addresses to mail forms to but everything else I read states it is required to be e-filed. My software (Drake) does not support Puerto Rico. After my research here are my specific questions:
Does a Puerto Rico return require a "Hacienda" preparer ?
Can I mail the return as specified in pub 570?
If software does not support what is a good software/program to e-file the Puerto Rico Return?
Thanks for any insight/advise you may have.
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