I'm not sure why the 1042-S was not issued. I had multiple conversations with fidelity, but still failed to understand their explanation to why a 1099 was issued instead of a 1042-S.
For your other question, I'd be paying taxes on my US income in India for the first time this FY (2023-24), as I just turned an ordinary resident (ROR).
I also have 1042-S for 2023 from Fidelity but following are the issues
1. For some reason, taxes were not withheld on the entire income (dividends + interest on the cash position), so I need to pay taxes separately to the IRS regardless. In other words, 1042-S won't be sufficient even if I consider the calendar year for India tax liability on the US income.
2. For Q1 2024, I'm considering showing the tax withheld statement from Fidelity + balance tax payment (manual) for #1 above (which is Q2-Q4, 2023, as I turned an ROR only in Q2, 2023) + balance tax payment (manual) for Q1 2024.
What are your thoughts on #2? Basically, the TLDR is that there might always be certain taxes not represented in 1042-S, which therefore have to be paid separately to the IRS, and the payment accordingly somehow certified for. We'd need to account for such tax payment through receipts (not sure if the online receipts obtained on payment of taxes on IRS would qualify as valid tax receipts, but I don't see any alternative) and statements from brokerage houses (e.g. taxes withheld in Q1 2024, for which we don't have any 1042-S yet).
And, afaik, even though foreign assets need to be declared only for the calendar year (Jan -Dec), the taxes do need to be paid for all income, including foreign income, earned during the FY.
Refer to the following article
https://economictimes.indiatimes.com/wealth/tax/how-to-report-your-foreign-in[product key removed]t[...
