Hi,
I recently received a Form 1042-S with: Income Code: 17 (Box 1), Exception Code: 16 (Box 4a) and Tax Rate: 30% (Box 3b). The federal government withheld 30%.
I have two questions:
Question #1. I’m wondering if you’d recommend filing this form with TurboTax. Have you heard of other TurboTax users who have successfully done this? I don’t want to raise any red flags with the IRS by declaring it in using Turbo Tax, as some prior forums have suggested. Based on your experience, what would you recommend it's best?
Question #2. If you think it’s okay to file this form with TurboTax, can you confirm that Step 1 & Step 2 below are the correct approach?
Step 1. Go to Wages & Income, scroll down to “Miscellaneous Income, 1099-A, 1099-C -> and scroll down to "Other reportable income” -> and manually add a description (Form 1042S) and gross income (box 2).
Step 2. Go to "Deductions & Credits," go to "Estimates and Other Taxes Paid" -> Income Taxes Paid -> Other Income Taxes Paid in 2024->Withholding not already entered on a W-2 or 1099" -> and add the amount on Federal Withholdings.
Thank you so much,
