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Level 1
March 31, 2026
Question

How to include my 1042-S deductions in my return (code 1 and 6)?

  • March 31, 2026
  • 1 reply
  • 234 views

I am a non resident alien but received a 1042-S form from my brokerage account for Code 1 - Interest paid by U.S obligors, and Code 6 - Dividends paid by U.S obligors. Since the brokerage account has been making tax withholdings form this activity, how should I include these activity and withholdings in my return?

1 reply

Level 15
March 31, 2026

A resident alien will file an IRS form 1040 tax return.  TurboTax will assist you in filing an IRs form 1040 tax return.

 

If you qualify as a resident alien for income tax purposes, interest and dividend income is reported as any other interest or dividend income.  In TurboTax Online, follow these steps:

 

  • Down the left side of the screen, click on Federal.
  • Down the left side of the screen , click on Wages & Income.
  • Click on the down arrow to the right of Investments and Savings.
  • Click to the right of Interest on 1099-INT or click to the right of Dividends on 1099-DIV.

Report Federal income tax withheld as follows:

 

  • Down the left side of the screen, click on Deductions & Credits
  • Scroll down to Estimates and Other Taxes Paid.  Click the down arrow to the right.
  • Click Start/Revisit to the right of Income Taxes Paid.
  • Click the down arrow to the right of Other Income Taxes Paid in 2025.
  • Click Start/Revisit to the right of Withholding not already entered on a W-2 or 1099.
  • At the screen Do you have any tax withholding you haven't entered yet, select Yes.

A nonresident alien will file an IRS form 1040NR  tax return.  Sprintax may be able to assist you in filing an IRS form 1040NR.

 

The IRS uses two tests: 

 

  1. the green card test and 
  2. the substantial presence test,

for assessing your alien status. If you satisfy the requirements of either one, you are considered a resident alien for income tax purposes; otherwise, you are treated as a nonresident alien.

 

If you are an alien with a green card, meaning the U.S. Citizenship and Immigration Service allows you to reside in the country legally, you are a resident alien. 

 

However, if you do not have a green card and spend at least 31 days in the U.S. during the current tax year and a total of 183 days during the last three tax years (inclusive of the current tax year), you will usually satisfy the physical presence test and are also treated as a resident alien.

 

You may be an "exempt individual" for purposes of the substantial presence test.

 

An “exempt individual” for purposes of this test may be:

 

  • A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa.
  • A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa.

This is a complex portion of tax law.  See also this TurboTax Help.

 

 

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