I just received a 1042-S (income code 19) and I have already filed my federal and state taxes using Turbo Tax. Should I file a 1040X to amend?

[fcinter1908]

Hello,

I am a J1 visa holder and in 2020 I became a US resident alien for tax purposes. After receiving my W2 for 2020 I proceeded to e-file (through TurboTax) a 1040 tax-return form (for federal) and the state tax return. Both have been already processed and accepted by IRS.

However, I have received today a 1042-S form (income code 19, Exemption code 04), reporting for one single salary received in 2020 tax-year where apparently I was still a NON-resident alien for tax purposes and under the benefit of the tax-treaty (Box7a and 10 are = 0). Unfortunately, this form came late and I could not report for it in the filed 1040 nor attach it to my tax returns. Since the amount in box7a and 10 are 0 (due to the tax treaty), my federal tax refund is most likely not going to change, but I am not sure about the state one (this might change).

Am I required to file a 1040X to amend for this? In case I am, how should I proceed in order to include the information of the 1042-S in the 1040X and attach a copy of the 1042-S?

Thank you

[MaryM428]

No you are not required to amend your tax return. 

TurboTax does not include Form 1042-S.  Form 1042-S does not need to filed with your income tax return.
 

Sometimes, this form is mailed out strictly for informational purposes and therefore does not need to be included on your return. This is often the case when Resident Aliens receive this form. 
 

The significant items  on the 1042-S form are Box 7 and Box 10. Box 7 is US Federal Tax Withheld and Box 10 is Withholding Credit. If both of those boxes are 0, then nothing was withheld and there is no withholding credit and the 1042-S form is just for your informational purposes. 

[fcinter1908]

Thank you.

However, I want to specify that in my tax return (1040) I did not account for the amount of the wage reported in the 1042-S form because the W2 did not account for that. Basically, the total income on my tax return would have been different if I had included the wage reported in the 1042-S. 

Would this change anything about the need of filing a 1040X (always considering that Box 7 and Box 10 of 1042-S are = 0)?

Thank you!

[DaveF1006]

No this would not change anything because the 1042-S is not a form that is filed with a US tax return. You still would not file an amendment with your return.

[Edited 03-09-2021|11:37 AM PST]

[Lior]

Thank you @MaryM428  for your helpful answer!

I have the same problem. 

I started my tax treaty in December 2018 and ended it in November 2020.

Am I a resident alien? Can I file form 1040 without reporting form 1042S (same Income code 19, Exemption code 04, zero withholding) ? 

Thank you,

[LinaJ2020]

if you are considered as resident for tax purposes for 2020, you will treat receiving the 1042-S as a resident in 2020.  You will need to report that income on your Form 1040.  Per instructions, income cod19 on the Form 1042s refers to compensation for teaching.  You can simply include it under Other Income. If you have filed your 2020 taxes, you would need to amend.  However, if tax treaty applies to you ( tax treaty can apply to both residents and non-residents) and exempt your income, you do not need to amend if the result does not create any differences.  As tax treaty topic is out of our scope for advising, you would need to consult a professional for verification. 

@fcinter1908

When did you enter the US and with what visa?

If you have not filed, you do need to include the income and show the exemption to the IRS it is not taxable after you verify with another professional.  Here are the steps:

In TurboTax online,

• Report your full income under the appropriate section. Then enter the treaty exempt amount as negative amount (e.g. -5000) under Federal Taxes / Less Common Income / Miscellaneous Income 1099A, 1099C / Other Reportable Income
• Download and fill in a Form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf
• You cannot e-file.  You can still use the TurboTax program to prepare your tax forms, but you need to print them out and submit by mail along with the form 8833. 

@Lior

[Lior]

Thank you!!

I entered the US in December 2018

[LinaJ2020]

If you are on  J-1 visa, you are considered as a non resident in 2018 and 2019.  Starting from January 1st, 2020, if you stay more than 183 days or meet the Substantial Presence Test SPT, you are considered as a resident.  

If you are on H-1b visa, you will be considered as a resident for tax purposes if passing SPT starting from day one when you enter the US. 

[fcinter1908]

Thank you @LinaJ2020 for your answer!

I have already filed my 1040 as a resident and yes, tax treaty already applied to me for 100% of the income reported on the 1042-S, so no tax was withheld. I guess I will not file an amendment then.

Also, I entered the US as J1 at the end of January 2018.

[LinaJ2020]

Awesome !  You are very welcome.

[Jane07]

I have the same issue, I am a first year resident alien, J1 scholar status. My 1042s income(income code 19) did not include in my W2 box1, and I did not input 1042s in my return, because it came late. I am entiled to tax expemtion allowed by tax treaty. Tax treaty is applied to federal tax return, but not new york state return. Do I need to amend the state tax return?

[rifatipe09]

Same case happened for me too. I am in f1 visa, entered USA in 2017 so a resident alien for tax purposes now. I used turbotax to efile my return. It has been accepted by IRS too- as I got the message from turbotax.

Then I got 2 1042-s from my university. One is for the tax treaty, another for a prize that I won in a competition.

One has 0 amount in line 7 and 10. Another has a non-zero amount on line 7 (hence, the same amount on line 10).

Do I need to amend? If yes, should I wait to get my current return at first?

[DaveF1006]

To clarify, did you report the prize amount that you earned, which included the withholding? if so, here is how you should report if you haven't reported already here is how to report this on an amended return. To amend:

1. Sign in to TurboTax
2. On the home screen, scroll down to Your tax returns & documents and select the year you want to amend
3. Select Amend (change) return, then Amend using TurboTax Online.
4. On the screen OK, let's get a kickstart on your amended return, select the reason(s) you're amending and Continue
5. When you reach Here's the info for your amended federal return, select Start next to the info you need to change

Once you gain access to your tax return and the refund monitor resets to 0, here is how to report the 1042S with the prize money that was won.

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income 
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Enter description and amount.  Here report Prize Money reported on 1042S and then the amount.   

 To reclaim your withholding tax reported on your 1042-S, assuming that Boxes 7 & 10 was reported on this 1042S.

1. Go to federal>deductions and credits
2. Estimates and other Taxes Paid>other income taxes>start
3. Scroll down to other income taxes paid in 2022
4. Withholding not already reported on a W2 or 1099

For the 1042S treaty benefits, I need more information so I can determine if this needs to be reported or not. For an example, is this income you reported in your original return and needs to be subtracted from taxable income or this income that hasn't been reported but is subject to a treaty benefit. If so, what country?

Also I assumed the withholding was withheld from the 1042S reporting the prize money.  If this is incorrect, then let us know.

@rifatipe09 

[rifatipe09]

I asked your question to the Payroll. Copying the reply they gave to me about the 8000$ one i.e. the tax treaty:

"

The 1042-S with the $8,000 is the treaty benefit.

This was reported to the IRS and will need added to the tax return."

The problem is whenever I add this 8000 to my amended return it shows I am due instead of getting any refund. I had tax treaty on previous years too, but I never was due.

@DaveF1006 

[ThomasM125]

You would likely owe taxes if the tax on the income you report is more than the tax that was withheld, as reported on line 10 of your Form 1042-S. You would have to compare the income amount and tax withheld amounts this year with what was reported in previous years on Form 1042-S to determine what the difference is. @rifatipe09 

Also, the amount and source of your income and deductions and credits listed on your return may vary from year to year and that may affect your tax due or refund status.