FOR_TAX
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Problem with entering State Tax withheld from 1042-S as a Resident Alien

Hello,

 

I am an international student, and I got into the USA in Dec 2020, and I haven't left since then. In the past, I filed my taxes with Sprintax as a nonresident alien, but this year I qualify to file as a resident alien. However, my school issues me a Form 1042-S with scholarship and fellowship payment and federal and state taxes withheld.

I am using TurboTax and I found a website that explains how to for 1042-S manually on Turbotax here:
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-to-report-1042-s/00/3319522

The step-by-step process is:

  1. Open your return in TurboTax

  2. Click on Wages & Income

  3. Scroll down to All Income

  4. Scroll down to Less Common Income

  5. Scroll down to Miscellaneous Income, 1099-A, 1099-C

  6. Click Start

  7. Scroll down to Other reportable income

  8. Answer yes and record this as 1042-S income and then the amount

Now to report the tax withheld:

  1. With your return open

  2. Click on Deductions & Credits

  3. Scroll down to Estimates and Other Taxes Paid

  4. Click on Other Income Taxes

  5. Scroll down to Other Income Taxes

  6. Click on Withholding not already entered on a W-2 or 1099

The problem I am facing is that, I have followed these steps and but in the State and Federal taxes withheld under (Withholding not already entered on a W-2 or 1099) but I noticed that after I am done with federal tax and I move to the state tax section, there is another section called "Other Income Taxed by Indiana" asking me to put information about other income.

 

Tax state.png

 

Should I put the income from my 1042-S here again? I noticed that when I enter that income, it significantly reduces my state return, in fact, I have to pay the state. There is also no place to enter the state tax withheld in this section. What should I do?