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Carolina_V
Level 2

1042-S form (income code 16) - Unable to e-file

Hello,

I am a resident alien and received a 1042-S (income code 16).

I reported it as a fellowship, and reported the income tax withheld as "Other income taxes paid in 2020". However, I am not able to e-file (I am receiving a message saying that my income tax withholding is greater than my income.

Is this correct? Is there a way to report the fellowship under income so I can e-file?

Thank you!

1 Best answer

Accepted Solutions
AmyC
Expert Alumni

1042-S form (income code 16) - Unable to e-file

You can have it turn into income. You can enter it as other income. Follow these steps:

  1. Log into your return
  2. Federal
  3. Click on Income
  4. Scroll to the bottom section, Less Common Income
  5. Select Miscellaneous income, 1099-A, 1099-C, start
  6. Select Other Income
  7. Did you receive other wages? Yes
  8. Continue
  9. Household employee? Continue
  10. Sick or disability pay? Continue
  11. Any other earned income or wages? Yes
  12. Enter source of Other Earned Income
  13. Select Other
  14. Continue
  15. Enter description SCH
  16. Enter amount, $1 or full amount

If the amount is less than $12,400, you could enter the whole thing since it would not be taxed.

 

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7 Replies
LinaJ2020
Expert Alumni

1042-S form (income code 16) - Unable to e-file

You should be able to e-file.  

 

You will treat Form 1042- S as receiving a scholarship or fellowship to offset your qualified education expenses if there are any.  You will enter the amount in box 5 on your Form 1098-T.  If you have paid any qualified tuition expenses out of pocket, you would enter information by following the steps below.  As IRS receives a copy of your Form 1042-S, you can e-file your tax return.  You do not need to submit your Form 1042-S separately.

 

In TurboTax Online,

  • After sign into your account and select Pick up where you left off
  • At the right upper corner, in the search box, type in 1098t and Enter 
  • Select Jump to form 1098T 
  • Follow prompts

 

If you have paid in any tax withholdings, enter info so you will not be taxed twice.  Here are the steps:

  • 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 Other Income Taxes Paid / Withholding not already entered on a W-2 or 1099, to enter info

If your scholarship amount exceeds your tuition and other qualified expenses like books and supplies, the difference will be taxable as wages (SCH) on line 1 of your Form 1040.

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Carolina_V
Level 2

1042-S form (income code 16) - Unable to e-file

Dear Lina,

 

Thanks a lot for your help!

 

Two follow up questions:

  1. The Fellowship reported on my 1042-S is not on my 1098-T. Is it correct to add it to "Other Scholarships/Grants/Fellowships?"
  2. When I tried to e-file, I received the message below (probably because the only income I received in 2020 was from the fellowship, which I was taxed for). Any recommendation on how I should proceed?

"Your Federal Return is not eligible for electronic filing. The tax withheld of $x is greater than or equal to $0, the sum of income from the following sources:
Form 1040, line 1

Form 1040, line 2b

Form 1040, line 3b

Form 1040, line 4b

Form 1040, line 5b

Schedule 1, line 7

Form 1040, line 6a

Schedule 1, line 8

Schedule C, line 1"

 

Thank you!

ReneeM7122
Level 8

1042-S form (income code 16) - Unable to e-file

Yes, Is it correct to add your fellowship to "Other Scholarships/Grants/Fellowships."

Here is a link to a thread with more information about how to report fellowship income in Turbotax.

Carolina_V
Level 2

1042-S form (income code 16) - Unable to e-file

Thank you! I followed the instructions, but I am receiving the message below when I try to e-file. Any idea why?

 

"Your Federal Return is not eligible for electronic filing. The tax withheld of $x is greater than or equal to $0, the sum of income from the following sources:
Form 1040, line 1

Form 1040, line 2b

Form 1040, line 3b

Form 1040, line 4b

Form 1040, line 5b

Schedule 1, line 7

Form 1040, line 6a

Schedule 1, line 8

Schedule C, line 1"

 

Thank you!

ReneeM7122
Level 8

1042-S form (income code 16) - Unable to e-file

Code 16 would signify scholarship income. 

If the 1042-S is reporting the scholarship, and it is taxable, you can enter it in the Education Section under Deductions & Credits, but don't report a 1098-T if you didn't get one. Answer "No" that you didn't receive a 1098-T and "No" you don't have an exception, the screens that follow should allow you to enter the scholarship amount only. (without the 1098-T) 

Yes, enter the tax withheld under "Estimates and Other Taxes Paid" 

 

Your return should be eligible for e-filing. Since the amount from the 1042-S will be on line 1 of your 1040, there is no reason to mail that form in, but do keep a copy with your tax files. 

 

Answer from this thread

Carolina_V
Level 2

1042-S form (income code 16) - Unable to e-file

Hi Renee,

 

Thank you for the help and patience.

 

I did follow the instructions (reported my fellowship on "Education Section under Deductions & Credits" and the tax withheld under "Estimates and Other Taxes Paid"). Yet, my fellowship did not appear on line 1 of my 1040. I suspect it is because my education expenses were higher than my fellowship.

 

This is preventing me from being able to e-file. Is there any workaround?

 

Thank you,

Carolina

AmyC
Expert Alumni

1042-S form (income code 16) - Unable to e-file

You can have it turn into income. You can enter it as other income. Follow these steps:

  1. Log into your return
  2. Federal
  3. Click on Income
  4. Scroll to the bottom section, Less Common Income
  5. Select Miscellaneous income, 1099-A, 1099-C, start
  6. Select Other Income
  7. Did you receive other wages? Yes
  8. Continue
  9. Household employee? Continue
  10. Sick or disability pay? Continue
  11. Any other earned income or wages? Yes
  12. Enter source of Other Earned Income
  13. Select Other
  14. Continue
  15. Enter description SCH
  16. Enter amount, $1 or full amount

If the amount is less than $12,400, you could enter the whole thing since it would not be taxed.

 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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