Question

Puerto Rican resident questioning the inclusion of the dividends from a Credit Union on the 1040 form.

Forum|Forum|1 year ago
February 23, 2025
1 reply
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As a bona fide resident of Puerto Rico, I opened an account with a Credit Union that started advertising here and has two branches on the Island. I am retired and receive a pension from the mainland and also have an account in a US bank that I include in my return. My indecisiveness regarding the inclusion of the dividends on the 1040 was that they have two local branches on the Island. Three factors may favor the inclusion of the dividends: one, I opened the account online and not at the bank branch two, the routing # displayed on my bank statements belong to the main office in Virginia, and finally on my January statement stated that the information was being provided to the IRS so you may complete form 8606 if applicable. I understand that 8606 is for IRAs, which is not applicable to me, but it is still being reported to the IRS.

M

MAK70

You will want to include the dividends on the U.S. tax return. Dividends are considered U.S. source income if the corporation is created or organized in the U.S. You would have to check to be sure, but it seems that it is a U.S. bank with branches in Puerto Rico. See Table 2-1.