Where to submit my 1042-S (Income code 16 and 20) information as a resident alien?

[wangyong0910]

I am an international student from China who came to the states in 2012. I turned into a resident alien last year (2017), but still I received 1042-S without W-2. How could I submit my 1042-S information to IRS through TurboTax?

More of background information. I've been receiving both 1042-S and W-2 every year since I came here because I've got a research assistant position which covers tuition and fees, insurance, and salary. But in 2016 I received a fellowship lasting from September 2016 through August 2017, and my assistantship was terminated during this period. September 2017 the assistantship was picked up again until the end of the year, which made me fill out Glacier again as a new employee when I was a resident alien already then. After all these, I only received two 1042-S forms (Income code 16 and 20) early this year, which I assume one is for the fellowship and the other for the assistantship. But I don't know what to do with them. I'm sure there are withholding taxes in them, and I am eligible for the tax exemption treaty between the two governments.

[LinaJ2018 · Accepted solution]

If you are a US resident for tax purposes, you can claim the tax treaty exemption on your tax return if you meet the criteria.  Please see https://www.irs.gov/pub/irs-pdf/p901.pdf- and review under the appropriate category.

To report your Form 1042S information, in TurboTax online edition, please see information below:

For income code 16, it's for Scholarship and Fellowship/Grant, here are the steps:

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in "1098t" and Enter
• Select Jump to 1098t
• On the screen, Now Let's gather XYZ's Additional Education Expenses
• Follow prompts
• Next screen, Your Education Expenses Summary, select Edit
• Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information

For income code 20, it's for  Compensation during studying and training, to enter the info, please follow:

On the screen, 

• To your left, select Federal, from the top, select Wages & Income, scroll down to Less Common Income ( very last section on the screen) 
• Click on Show more drop-down menu, scroll down to Miscellaneous Income, 1099-A, 1099-C- Start 
• Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099 select Start

If you are eligible for the tax treaty, you would need to file a Form 8833 and enter the treaty exemption as a negative amount.  Enter under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ".  You would need to print all tax forms and submit them by mail.  https://www.irs.gov/pub/irs-pdf/f8833.pdf

If you have paid any income taxes or your employer has withheld any, you would need to report to IRS so as to reduce your tax liability.  

• At the right upper corner, in the search box, type in estimates paid and Enter
• Select Jump to estimates paid
• On the screen, Estimates and Other Income Taxes Paid, select the correct category and enter information  

[wangyong0910]

It'll be especially helpful if putting this answer together with another one I found in the community. The link is <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3295782-what-to-do-with-1042s-6th-year-f1-student">https://ttlc.in...>

[jarvis]

I'm in very similar position but I *don't* have 1098T. I'm also from China (F1 visa) and became a Resident Alien in 2017. My question is here: <a rel="nofollow" target="_blank" href="https://goo.gl/srs3yx">https://goo.gl/srs3yx</a>
My income code is 16 and exemption codes are 04 and 16. All withholdings are 0. Do I still need to file 1042-S?

[wangyong0910]

I think so. First you need to report your 1042-S income, as following:

Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Income not already reported on a Form W-2 or Form 1099"
Select - "Yes" for "Other Wages Received"
After 3 screens, select "Yes" for "Any other earned income".
On screen titled "Enter source of other earned income" - select "Other"
Input the "1042-S wages" and the amount on the next screen

Then you need to claim tax exemption of this income according to "China-US tax treaty, exemption under article 20(b)" since it's scholarship income, as following:

Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Reportable Income" and enter this information here under other taxable income
You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20(b)) and the exempt amount as a negative number as shown on your 1042-S.

Also, don't forget to file 8833 form if you claim tax exemption. And double check with your university to see if you should receive 1098-T.

However, doing above steps won't change any amount for your tax return. Hope it helps. Good luck.

[jarvis]

@wangyong0910 you are super knowledgeable, thanks a lot for your help! One caveat: I'm receiving the 1042S for my scholarship, so I should probably write "1042-S scholarship" on my form?
Also would you like to privately chat with me on Telegram?

[wangyong0910]

It took me a couple of days to figure out how to file my last year's tax forms correctly (figures crossed), so I thought maybe I could help people who are in the similar situation to save them some time and trouble. Sorry I don't use Telegram. You can add me on Wechat. It's "shou188303'.

[jarvis]

@wangyong0910 just added you, thanks!

[tsong]

Thanks a lot for your advise. Here is my case: I am an international student from China and became a resident alien in year 2019. So I need to report through turbotax. I do have W-2 and 1098-T which I transfer the information on them to Turbotax already. However, I also have a 1042-S is with income code 20 and 3a exemption code 04 and 4a exemption code 15. I did the following steps as you suggested:

{

First you need to report your 1042-S income, as following:

Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Income not already reported on a Form W-2 or Form 1099"
Select - "Yes" for "Other Wages Received"
After 3 screens, select "Yes" for "Any other earned income".
On screen titled "Enter source of other earned income" - select "Other"
Input the "1042-S wages" and the amount on the next screen

Then you need to claim tax exemption of this income according to "China-US tax treaty, exemption under article 20(b)" since it's scholarship income, as following:

Click on the "Federal Taxes" tab
Next click on "Wages and Income"
Next click on "jump to full list"
Scroll down the screen until to come to the section "Less Common Income"
Choose "show more", then Miscellaneous Income
Choose "Other Reportable Income" and enter this information here under other taxable income

You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20(b)) and the exempt amount as a negative number as shown on your 1042-S.

}

After doing this, my federal refund increase a lot. Since I already applied the tax exemption at the HR of employer, the wages I got is already not exempted for the 5000 part. Should I report in "Other Reportable Income" and report negative number or fill form 8833?

[tsong]

Sorry, in the last graph I mean 5000 is not taxed rather than exempted. Sorry about that.