International student (resident alien for tax) received 1042-S.

[f1student2]

So, I've been in the US since 2017 so for my 2022 tax return, I'm considered as U.S. resident for tax purposes. But my university wasn't aware of this so they sent me 1042-S form. I did some research online and found that the school is supposed to send me 1099-MISC instead of 1042-S form. Is it correct? What next actions should I take? Should I request 1099-MISC from the school or should I just report 1042-S as other taxable income in TurboTax like other posts here have advised?

[Vanessa A]

You should start by requesting the correct form from the school.  This will be the simplest method. 

If the school does not respond or give you the correct form, then you can report the income as other taxable income.  To report this income select the following:

• Income 
• Scroll down and click Show More next to Less Common Income
• Click start next to Miscellaneous Income
• Continue through to where you see "Any other taxable income"
• Enter your other taxable income and the description
• Then continue

If the school withheld taxes, you would then need to go to

• Deductions and Credits
• Other Income Taxes
• Other Income taxes paid in 2022
• Withholding not already entered on a W-2 or 1099

[f1student2]

Thank you! 

I have another related question: am I eligible for American Opportunity Tax Credit as a resident for tax purposes?

[Vanessa A]

Yes, if you are otherwise eligible for the AOTC, then as a resident alien, you are treated the same as a US Citizen for tax purposes.

Some of the criteria to claim the AOTC include:

• Be in your first 4 years of higher education
• Not be claimed as a dependent on someone else's return
• Paid tuition as an eligible institution
• Were enrolled at least half time for at least one academic period. 

The AOTC is worth up to $2,500 and is partially refundable up to $1,000.

If you do not qualify for the AOTC, you may qualify for the Lifetime Learning Credit.  

• You can take this for an unlimited number of years
• Not be claimed as a dependent on someone else's return
• Paid tuition as an eligible institution
• Were enrolled at least half time for at least one academic period. 
• Twenty percent of expenses up to $2,000
• Non-Refundable meaning this can reduce the amount of taxes you owe, but if your tax liability is less than the LLC, your tax will be reduced to $0 and the rest of the credit is lost. 

For both credits, your income must be below $90,000 if you are single, $180,000 if Married Filing Jointly.  If you are married and file separately, then you would not qualify. 

If you do want to claim an education credit, then you should request a 1098-T from your school if they did not send you one. 

[f1student2]

Hi,

I just received this message from my school today: 

Hi, we will then remove the 1042s form and refund any taxes paid. As a resident for tax purposes you will not receive any tax forms for your fellowship/stipend. You will need to self-report this income.

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Now, I am confused about what should I do next, like how do I self-report this income? Form 1042-S (category 16) is a report on taxable scholarship/fellowships. Do I need input the same amount in 1042-S to be in the other taxable income source?

[MarilynG1]

If you have Education Expenses to report, in the Education section list the amount of the Fellowship income you received as 'Scholarship'.  

Any amount not used for Education Expenses will automatically be taxable income to you, and TurboTax will report this for you. 

If you do not have offsetting education expenses, the fellowship should be reported as less common income.

• Select Federal Taxes
• Select Wages and Income
• Scroll down to Less Common Income and select Start or Review
• Select Start next to Miscellaneous Income 1099A, 1099C and enter the information as 'Fellowship Income' and the amount.

@f1student2