How to report 1042-S

[malmukhtar]

As a J-1 visa holder in the U.S., I received a stipend from a U.S. scholarship. Initially, I filed my taxes as a Non-Resident. This year, I became a Resident for tax purposes after meeting the Substantial Presence Test (SPT), prompting me to switch from Sprintax to TurboTax for filing my taxes.

I received a Form 1042-S, which reports my gross income and the federal tax withheld. TurboTax doesn't offer a direct option to upload Form 1042-S. Following advice from the TurboTax community, I manually entered the information under "Less Common Income > Miscellaneous Income, 1099-A, 1099-C" and reported the withheld federal tax as an Estimated Tax Payment.

However, I received a notice from the IRS stating that the Estimated Tax Payment wasn't applied. Previously, when filing as a Non-Resident, the withheld tax from Form 1042-S was listed under section 25 of the 1040NR. This year, using TurboTax as a Resident, I entered the withheld tax manually, and it appeared in section 26 of the 1040.

My Social Security Number (SSN) is correctly listed on the Form 1042-S.

My question is about how to correctly report the Form 1042-S information in my tax filing, given the switch to TurboTax and my new status as a Resident.

[DaveF1006 · Accepted solution]

Here is the complete procedure to report, which includes the income tax withheld.

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Answer yes and record this as 1042S income and then the amount.

Now to report the tax withheld.

1. With your return open
2. Click on Deductions & Credits
3. Scroll down to Estimates and Other Taxes Paid\
4. Click on Other Income Taxes
5. Scroll down Other Income Taxes
6. Click on Withholding not already entered on a W-2 or 1099

[Brian292]

Thanks, but i just don't see how to "Click on Wages and Income" etc.It used to be with TT that you could find individual forms like Wages and Income and follow your advice ending with reporting the 1042 form (And get the withholding amount back).  What am I missing?

[Brian292]

This information is the same provided in 2019.  But it seems TT has changed the format  or something.  When I click on "Wages and Salaries", for example, it takes me to the page where I can report the W2 forms add some extra 1099s but it doesn't lead to anything else.  Sorry to be so dense, but I would love to follow your logical train to where I can file with the 1042 S but I just can't see it.  I can't see paying several hundred $ to a live tax expert and get the same info.  Again, I thank you.

[JotikaT2]

It depends.  Are you filing a nonresident return and need to file a 1040NR form?  If so, you will not be able to use TurboTax to prepare your tax return but can refer to this link for additional information on how you can file with Sprintax.

If you are filing as a resident, you will report the applicable income in the appropriate income section of the program.  For example, if you have interest and dividends income, that would be reported under Investment income.  If you have wages but do not have a W-2 Form, you would follow DaveF106's steps as provided above.   

If you are unable to locate the specific section, log back into TurboTax, scroll down on the page titled 2023 tax return Towards the bottom of the page, you will be able to select the arrow to the right of view all sections. Select Add wages and income.  This will take you to the Less Common Income section described in the steps above.  You can also follow the same steps to report the withholdings but will do so by selecting Add credits and deductions to get to the Estimates and Other Taxes paid section.

@Brian292 

[Brian292]

Thank you for  your reply and we seem to be getting closer.  You say 'Log back into TT, scroll down the page titled 2023 tax return.'  Should I first click on 'Finish and File' because I still don't see the page titled 2023 tax return.  This is maddening.  I seem to be on the verge, so close...

[Brian292]

Valhalla!!!!  I got it.  Thank you so much.  Not sure why TT can't do this as a normal part of return, but I hope I can write this process down for next year.

Again, Thanks!