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U.S. Citizen, NOT a bona fide resident of Puerto Rico. General Income. U.S. based company. ON pay stub. Puerto Rico Tax taken out (6k). Form 1116 Needed?

Level 1

All I have been able to obtain is information about residents and federal employees.

Need help with. Form 1116 as far as it being needed.

U.S. Based company issued a W-2. No information for Puerto Rico was on it. ON Last paycheck stub, there is Puerto Rico tax that was withheld.

Looking at SCH 3 Non-refundable credits. Also states "Attach form 1116 if required"

Upon reading multiple IRS Articles and scenarios. Still not clear on if this form needs to be attached or not.

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Level 15

Since you are likely NOT licensed to process Puerto Rico returns and Lacerte does not offer them, you should probably refer this client to someone that can do all returns. 

https://accountants-community.intuit.com/articles/1610525-entering-puerto-rico-form-w-2pr-informatio...


ex-AllStar

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Level 15

Since you are likely NOT licensed to process Puerto Rico returns and Lacerte does not offer them, you should probably refer this client to someone that can do all returns. 

https://accountants-community.intuit.com/articles/1610525-entering-puerto-rico-form-w-2pr-informatio...


ex-AllStar

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Level 1
I asked this question in regards to filing form 1040.  Which is done in the United States of America for a U.S. Tax return.
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Level 15
When all else fails READ THE INSTRUCTIONS https://www.irs.gov/pub/irs-pdf/i1116.pdf
Page 1 speaks to a possible election to NOT attach the 1116
Middle of page 2 says PR can be used as a foreign country.

ex-AllStar
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Level 1
Thank you So so much for this. I've alreay read Pub. 570 and Pub. 514  🙂
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Level 15

Suggest you read through Pub 570.  It tells you everything there is to know about filing requirements based on various scenarios, de minimis exception, and applicability of FTC.

It doesn't seem clear from your original post why there was PR tax withheld on the last paystub, what amount of income was reported to PR, and whether taxes withheld were actually remitted (it is not uncommon for payroll to make mistakes, which they rectified after the close of the year even after W-2's are issued, and only if they realize there was a mistake).  Have you established the actual PR liability?  If your client did travel and work in PR, including those for personal purposes, have you reviewed his travel records and workday details (which may include prior 3 years)?

"All I have been able to obtain is information about residents and federal employees."

By your own admission, you don't seem to have all the information on hand.  Until then, you can't really determine the proper filing position.

BTW, I'm not sure what you mean by "federal employees" when your post also says your client was with a US-based company.

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Still an AllStar
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