1042-S and State tax

[Adrien65]

I'm in my 3rd year as a J-1 teacher and I'm now considered as a resident. I have to use TurboTax instead of Sprintax.

I received a 1042-s form with income code 23.

I reported it as “other reportable income” using turbotax for the federal tax.

But this income is not considered by turbotax for the Massachusetts tax. How should I enter it in the State tax?

[JotikaT2]

The amounts you report under Other reportable income under the Less Common Income section will pull into your state return.

As you go through your Massachusetts return,  you would see a screen similar to the one below.  You will want to make sure you are leaving all of the income as being from MA.

Also, you are considered a resident now, you should go to your employer and request that they update your records so you are issued a Form W-2 for wages, etc as it applies to your specific situation.

[Adrien65]

Thank you for your answer.

I received a W2 and a 1042-S (Income code 23 - Exemption code 15).

I don't know where I can find the "Non Massachusetts Portion of Income" as you show in your message.

My problem is that for the MA tax, Turbotax is calculating the State taxes on the W2 income but the exemption provided by the 1042-2 (entered under "Other reportable income") is not taken into account.

I have been working under J1 Visa as a teacher since August 2017. By treaty exemption with France, I didn't have to pay tax during 2 years, meaning from August 2017 to August 2019.

That's why I received a 1042-S with exemption (my salary from January 2019 to August 2019 which is not taxable).

Have I done something wrong with Turbotax?

[KurtL1]

When you filed your return the income with the code 23 on your Form 1042-S needs to entered as Other income.

To enter the Other income amount in the Miscellaneous Income, Line 21, you would:

• Under the Income & Expenses find the Less Common Income - Select Show more
• Select Miscellaneous Income, 1099-A, 1099-C
• Select Other reportable income
• On the next screen Select Yes
• Enter the other income with the description of “Form 1042-S”

Because some of your wages were exempt from taxation per the U.S. China Treaty you will need to enter the amount that is not taxable in 2019 as a negative amount on Miscellaneous Income, Line 21.

To enter the Other income amount in the Miscellaneous Income Line 21, you would:

• Under the Income & Expenses find the Less Common Income - Select Show more
• Select Miscellaneous Income, 1099-A, 1099-C
• Select Other reportable income
• On the next screen Select Yes
• Enter the negative number with the description of “Form 8333”

You will need to complete Form 8333 and mail it in with your return showing your Treaty-Based Return Position Disclosure

[Adrien65]

Thanks !