topic How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax? in Get your taxes done using TurboTax

How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

lukas — Sun, 05 Apr 2020 22:21:20 GMT

I am a research associate who changed my position in 2019. As a result, I have 1042-S and W-2. I need help on 1042-S filing using turbo tax.

Here is the information I have. I am a resident alien for tax purpose. My income code is 16. Chapter 3 with Box 3a (exemption code) is 4 and Box3b (tax rate) is 00. The Box 7a (Federal tax withheld) has $$$.

It seems I have to jump 1098T to enter the information. However, I am not sure which Box I need to use in 1098T. Box 1 is tuition and Box 5 is scholarships/grants. I was not a student but a post-doctoral fellow.

For tax withheld, I guess I have to enter the amount in estimate paid in estimates and other income taxes paid.

Once done, do I have to submit 1042S to the IRS by mail? Or will TurboTax be suffice?

By the way, I have been in the US for over 5 years so the tax treaty is not applicable.

Many thanks in advace.

Thanks in advance for the help.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

KrisD15 — Sun, 05 Apr 2020 23:05:32 GMT

Code 16 would signify scholarship income.

If the 1042-S is reporting the scholarship, and it is taxable, you can enter it in the Education Section under Deductions & Credits, but don't report a 1098-T if you didn't get one. Answer "No" that you didn't receive a 1098-T and "No" you don't have an exception, the screens that follow should allow you to enter the scholarship amount only. (without the 1098-T)

Yes, enter the tax withheld under "Estimates and Other Taxes Paid"

Your return should be eligible for e-filing. Since the amount from the 1042-S will be on line 1 of your 1040, there is no reason to mail that form in, but do keep a copy with your tax files.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

lukas — Mon, 06 Apr 2020 01:30:21 GMT

Kris,

Thank you for your reply. It is very helpful. I am going to enter the information as you recommend. A question I have is what tax rate is indicated by exemption code 4 in box 3a and tax rate 00 in box 3b in the Form 1042S. I thought that gross income multiply by tax rate is what goes in federal tax withheld box 7a, which would be 0 if the tax rate is 0% as in box 3b. I just wanted to understand the Form 1042S.

Thank you in advance

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

DaveF1006 — Mon, 06 Apr 2020 01:51:55 GMT

Box 7A is the amount of income tax actually withheld by an employer because they chose to withhold it.. The tax amount withheld can be calculated by multiplying box 6 (net income) by box 3b (tax rate) but is not always the case.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

lukas — Mon, 06 Apr 2020 02:06:01 GMT

Dave,

Thanks for the reply. Interestingly, I noticed that box 6 (net income) is empty. I have $$$ in box 2 (gross income). How should I understand this difference in box 6 and box 2?

Regarding the withholding, is it correct understanding that I would get the withheld income tax back as box 3b (tax rate) is 00%?

Many thanks

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

lukas — Mon, 06 Apr 2020 04:05:57 GMT

When I tried to enter the tax withheld under "Estimates and Other Taxes Paid", it stated that I have to enter the amount per quarter. And it states that estimated tax paid is uncommon as withholding is more common. My 1042S box 7a is withholding and I would like to just double-check what I am doing is right.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

KurtL1 — Mon, 06 Apr 2020 20:10:05 GMT

To enter the withholding on you 1042-S you should:

Enter Estimated Payments in the Search Magnifying Glass in the upper right hand corner of your screen.
Select Go to Estimated Payments in the Blue box.
Toward the bottom of the screen there is a section Other Income Taxes Paid in 2019
Select Withholding not already entered on a W-2 or 1099
Enter the withholding from the 1042-S

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

hennapopli — Mon, 15 Mar 2021 02:00:21 GMT

Replying to ', the screens that follow should allow you to enter the scholarship amount only. (without the 1098-T) '

The screen doesn't allow me to do that. It insists on entering School Information as on 1098-T. I did say I do not have 1098-T. Please help.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

AmyC — Mon, 15 Mar 2021 20:15:40 GMT

The 1042S is not supported so you have to enter the parts separately.

For the income:

Go to federal
to Income and Credits
to last section, Less Common Income
bottom selection, Miscellaneous Income
Start
bottom selection, Other Reportable Income
Start
Any Other Taxable Income?
Yes
1042S income and enter the total

If this is treaty related income, you would add another line for the treaty and a negative dollar amount.

@hennapopli another option for you

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

Maen — Sun, 28 Mar 2021 12:46:39 GMT

Hi Amy,

This is very helpful. However, after doing these steps should, where should I enter the amount of withholdings?

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

AmyC — Mon, 29 Mar 2021 19:09:43 GMT

@Maen to enter tax withheld on the 1042-S.

Go to the federal section
Deductions and credits
Scroll down to Estimates and Other Taxes Paid
Select Other Income Taxes - start
Scroll down to Withholding not already entered on a w2 or 1099, start
Enter amount

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

Maen — Tue, 30 Mar 2021 16:23:04 GMT

Thank you Amy, your are really amazing. However, I still have one more question, do I need to file the 1042-S separately by mail to IRS after i do it on TurboTax?

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

KrisD15 — Tue, 30 Mar 2021 19:32:09 GMT

No, if the information from the 1042-S is included on the 1040 (although as individual entries, not as a 1042-S Form) there is no need to also mail the 1042-S.

Keep your copy of the 1042-S with your tax file.

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

ptchi2026 — Thu, 01 Apr 2021 20:35:52 GMT

Hi @AmyC, your reply is really helpful.

However I have another problem with this. Although I was able to add the federal tax withheld tax, that amount unfortunately is greater than the income that was report on my W-2. I can not find way to report the gross income from 1042-S form neither. What can I do?

Re: How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

AmyC — Thu, 01 Apr 2021 20:53:22 GMT

The 1042S is not supported so you have to enter the parts separately.

For the income:

Go to federal
to Income and Credits
to last section, Less Common Income
bottom selection, Miscellaneous Income
Start
bottom selection, Other Reportable Income
Start
Any Other Taxable Income?
Yes
1042S income and enter the total

I don't think yours is but IF this is treaty related income, you would add another line for the treaty and a negative dollar amount.

@ptchi2026