topic How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax? in Get your taxes done using TurboTax

How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax?

CBob — Sun, 21 Mar 2021 22:11:08 GMT

Hello, I am a non-resident alien with a stock portfolio in a US investment bank. The investment bank posted my tax docs in the form of a 1042-S form (not a 1099-DIV). There are 3 sections, all relate to dividends (income code 06). See details below, note x, y, y*, z and z* denote dollar amounts:

* The first page reports gross income x with exemption code 02 in box 3a. Tax rate is 0% in box 3b. Federal tax withheld is 0 in box 7a.

* The second page reports gross income y with exemption code 00 in box 3a. Tax rate is 15% in box 3b. Federal tax withheld is y* in box 7a.

* The third page reports gross income z with exemption code 00 in box 3a. Tax rate is 30% in box 3b. Federal tax withheld is z* in box 7a.

Looking at other articles it seems turbotax does not directly support form 1042-S. So I inputted:

1. the sum of the 3 incomes (x+y+z) in Wages & Income/Miscellaneous Income/Other reportable income/Enter description "Form 1042S" and amount as "x+y+z".

2. the sum of the federal taxes withheld (y*+z*) in Deductions & Credits/Other Income Taxes Paid in 2020/Withholding not already entered on a W-2 or 1099.

Turbotax is calculating that I get a federal refund of y*+z* (the tax withheld) which isn't right. I'm also unclear how I was supposed to input the 3 dividend incomes at different tax rates (0%, 15% and 30%).

Appreciate your guidance on this. Thanks in advance.

Re: How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax?

ThomasM125 — Thu, 25 Mar 2021 21:40:05 GMT

You need to report the dividend income as such in TurboTax by using these menu tabs:

Income and expenses
Interest and Dividends
Dividends on 1099-DIV

Indicate that you do not have a form 1099-DIV. Choose the My form has info in more than just these boxes option and you will see box 4 where you can enter the federal tax withheld. You will also see an entry for state tax withheld later in that section.

You should enter the amount of money you received from the dividends as the dividend income.

If the dividends are ordinary dividends, they may not be taxable if you are in a low income tax bracket.

Re: How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax?

CBob — Sun, 25 Apr 2021 10:14:27 GMT

Thank you for your response.

I followed your instructions, with 3 entries under the Dividends on 1099-DIV section under Wages & Income. I'm still seeing a large refund owed to me according to TurboTax which is not right.

Can help me understand how I can input it correctly? Possible to jump on a live chat?

Thanks

Re: How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax?

DaveF1006 — Wed, 28 Apr 2021 00:43:51 GMT

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