I received a 1042-S with income code 15 (for retirement income in my specific case) and exemption code (chapter 3) 04 (which I understand is exempt under tax treaty). At the time of withdrawal of my retirement income (last January) - I would likely have been a non-resident alien. But my circumstance changed late last-year and I triggered the substantial presence test to fall under a resident alien for tax purpose for 2017.
Where in Turbotax can I enter the information on my 1042-S. No tax was deducted and I need to pay both federal/state tax on this retirement withdrawal as well as the early withdrawal penalty.
This answer should help you. If you have any other details regarding this question, please feel free to post them in the comment section.
For a Code 15, you will report this income in the Retirement Income section using a Substitute 1099 R.
You will report both the distribution and any taxes withheld. Include the state information as well.
what is your visa status in the US and since when are you in the US?
This answer should help you. If you have any other details regarding this question, please feel free to post them in the comment section.
For a Code 15, you will report this income in the Retirement Income section using a Substitute 1099 R.
You will report both the distribution and any taxes withheld. Include the state information as well.
Thank you for your answer. From what I understand, my circumstance is a little different. Box 7 and box 10 are both 0 indicating no tax was deducted. However, I am pretty certain that this income is taxable and I owe taxes on this money - both federal and state tax (which would be calculated based on total income) and an early withdrawal penalty for early withdrawal of retirement income (again both for Federal and state each having a different penalty rate). The boxes are 0 because at the time of withdrawal, my employer asked me my country of tax residence for 2017 and I entered a foreign country (where I did spend most of 2017). Had I provided different information, they would have deducted taxes and issued me a 1099-R instead. But for unrelated reason, I did end up visiting the US late in the year and ended up triggering the substantial presence test to be classified as a resident for tax purpose.
My question is really about figuring out where to enter this information on turbotax. I did see that turbotax does not offer direct support for 1042-S but the following answer <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3987997-what-do-i-do-if-i-received-a-1042-s">https://ttlc.intuit.com/questions/3987997-what-do-i-do-if-i-received-a-1042-s</a> suggested I can enter the information depending on the income code.
Without being able to incorporate this, my purchase of turbotax for filing this years return would be rendered completely useless. I definitely need to include the information on my return since IRS would also have received a copy of the information. I just don't know how and where.
Sorry, I seem to have missed the first part of your answer in which you have answered my question. :-). Thank you.
I understand. Have you tried entering it as "Substitute" 1099-R as above? If you need help with the numbers and entries, let me know.
Hope I helped. Here's another way to get to that area in TurboTax:
While inside the software and working on your return, type 1099-r in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to 1099-r. Select that to get to the general area. Then, select that you will type it in yourself.
I did manage to enter the information in "substitute 1099-R". However, I do have some questions since the boxes in the 1099-R and 1042-S are not identical.
On the 1042-S, apart from all the codes and information about the payer and payer EIN and state tax no, there is only one number - gross income. (all other boxes for numbers are 0 since no tax was withheld)
On the 1099-R, there are boxes for taxable amount (box 2a), box 2b for total distribution, employee contributions (box 5), codes that match box 7 (should it be 1 for early withdrawal), some other calculations about percentage of contribution from employee and then state information (box 14 state distribution amount)
For taxable amount - my understanding is that it should be the same as the gross income. So, that is what I am putting. If I am making a mistake, or if there is any other interpretation, please could you chime in ?
For box 2b, what is "total distribution" ? What is "total" referring to in this case ? Is it an indicator of 100% of what I had in my retirement plan or does the "total" reference a relationship to the "gross income" in box 1 ?
For employee contribution, I know how much is my contribution from the gross income. Should I put this number ? Does it matter ? The "learn more" turbotax help box suggests that if the contribution is "after-tax" or a "portion of insurance premium", it should be included in this box. I don't know the exact calculations used by my employer in determining contribution amounts but there is a possibility that it might be pre-tax and not post-tax. I could check if it matters but would like to know more on whether it does before checking.
For codes in box 7, I am assuming 1 (early withdrawal except roth no exceptions) should be appropriate for my circumstance.
The 1099-R then goes on with some calculations about percentage of employee contribution details which other than my own number (pulled from my employer website), I have no real details.
Box 14 is the state distribution amount ? What is this number representing ? Should it be identical to the gross income or should it be blank ?
Also, is the Federal ID number on 1099-R the same as Withholding agent's EIN (box 12) on the 1042-S.
Lastly, when filling out form 4852 for explanations of line 9 and 10, the software brings up multiple lines to allow me to provide an explanation. After filling this in, when I attempt to print the form (just to see how my explanation shows up on the form), the individual lines are getting re-ordered. Am I missing something here ?
Thank you for taking the time to share this answer. I appreciate it. If you have any thoughts or additional experience with the above boxes/questions, I'd definitely appreciate it.
see this for reference: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1099r.pdf">https://www.irs.gov/pub/irs-pdf/f1099r.pdf</a>
On the 1042-S, apart from all the codes and information about the payer and payer EIN and state tax no, there is only one number - gross income. (all other boxes for numbers are 0 since no tax was withheld)
Sounds like Box 1
On the 1099-R, there are boxes for taxable amount (box 2a), box 2b for total distribution, employee contributions (box 5), codes that match box 7 (should it be 1 for early withdrawal), some other calculations about percentage of contribution from employee and then state information (box 14 state distribution amount)
For taxable amount - my understanding is that it should be the same as the gross income. So, that is what I am putting. If I am making a mistake, or if there is any other interpretation, please could you chime in ?
Box 1 and 2 a should be the same
Box 2b would only be used if you received the total account distributed to you. Don't be concerned here.
For employee contribution, I know how much is my contribution from the gross income. Should I put this number ? Does it matter ? The "learn more" turbotax help box suggests that if the contribution is "after-tax" or a "portion of insurance premium", it should be included in this box. I don't know the exact calculations used by my employer in determining contribution amounts but there is a possibility that it might be pre-tax and not post-tax. I could check if it matters but would like to know more on whether it does before checking.
You can leave this blank. However, the taxable amount in 2a would equal the gross distribution (box 1) minus your after-tax contributions. (It doesn't sound like you have any here. Check with your employer.)
For codes in box 7, I am assuming 1 (early withdrawal except roth no exceptions) should be appropriate for my circumstance.
If it's a typical early withdrawal, Box 7 would be 1.
The 1099-R then goes on with some calculations about percentage of employee contribution details which other than my own number (pulled from my employer website), I have no real details.
Box 14 is the state distribution amount ? What is this number representing ? Should it be identical to the gross income or should it be blank ?
If a pension/401k distribution is taxable in your state, enter your box 2a here.
Also, is the Federal ID number on 1099-R the same as Withholding agent's EIN (box 12) on the 1042-S.
Correct.
Lastly, when filling out form 4852 for explanations of line 9 and 10, the software brings up multiple lines to allow me to provide an explanation. After filling this in, when I attempt to print the form (just to see how my explanation shows up on the form), the individual lines are getting re-ordered. Am I missing something here ?
Seems strange. A separate question posted here may be in order here.
I think you're on the right track. Unfortunately, I have to leave for my weekend. Post a new question, if necessary, to get better service. I hope I helped. Good luck!
The part about lines on form 4852 getting re-ordered is a bug which has already been entered into the turbotax bug todo fix list. More can be found here : <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4178383">https://ttlc.intuit.com/questions/4178383</a>