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lsagunner
New Member

What to do with 1042S? 6th year F1 student...

Hello, I wrongly reported the years of stay in US when I came to my current university -- It seems that I didn't correctly report the days I studied in a previous university as I hadn't got any payment then.

Now, I'm told that I shouldn't have signed tax treaty last year. However, coming from China, I find that I'm still eligible for exactly the same treaty benefits even I become a resident alien.

With 1042S form in hand, I'm not sure what to do... Can I simply attach it with a 1040 form? In W2, the $5,000 is already deducted from taxable income... Could anyone help me? Thanks! 

1 Best answer

Accepted Solutions
DS30
New Member

What to do with 1042S? 6th year F1 student...

If you are an F-1 visa holder, you are considered a non-resident alien for the first 2 (non-students) or 5 (students) calendar years because you will be exempt for the Substantial Presence Test (SPT) .

Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.

However, since 2015 was your 6th year in the USA, you will be considered a US resident for income tax purposes.

 You will need to enter both the 1042-S and the amount of treaty exemption (if additional treaty exemption is available)on your Form 1040 if you are a US resident alien. If you received a 1042-S then the IRS has also received a copy of this 1042-S.

You will enter the 1042-S income under other earned income (or scholarship income if it is for a scholarship grant)and you will enter the amount of the treaty exemption (if any available) as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)

Since Form 8833 is not supported by TurboTax, here is the link to the IRS website regarding claiming a tax treaty benefit:

https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits

To enter your 1042-S for wages under other miscellaneous income:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages and Income”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose "show more", then Miscellaneous Income
  6. Choose "Other Income not already reported on a Form W-2 or Form 1099 " 
  7. Select - "Yes" for "Other Wages Received"
  8. After 3 screens, select "Yes" for "Any other earned income".
  9. On screen titled " Enter source of other earned income" - select " Other"
  10. Input the "1042-S wages" and the amount on the next screen (screenshot #1)

If this is scholarship income.

To enter your 1042-S related to your scholarship into TurboTax:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and Credit”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Education”
  5. Choose "show more", then Expenses and Scholarships (Form 1098-T)
  6. You will need to choose the student this Scholarship relates to and select "edit"
  7. Under the Education Summary page, select "Scholarships and Grants" - edit
  8. Say "yes" - to question "Did (name) receive a scholarship or grant in 2015?"
  9. Enter amount as "Other Scholarships/Grants/Fellowships (screenshot #2)

You will now need to enter a negative amount for the treaty exemption under other miscellaneous income

To enter your treaty exemption under as other miscellaneous income:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages and Income”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose "show more", then Miscellaneous Income
  6. Choose "Other Reportable Income" and enter this information here under other taxable income (screenshot #3)
  7. You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20) and the exempt amount as a negative number.


View solution in original post

15 Replies
DS30
New Member

What to do with 1042S? 6th year F1 student...

What type of income is being reported on 1042-S? wages, scholarship? Was the treaty amount already taken out of your W-2 wages? If so, you will not be able to tax this treaty exemption against your 1042-S income.
lsagunner
New Member

What to do with 1042S? 6th year F1 student...

Hello. It is grant to assistantship. And it is deducted from 1042-S. I'm not sure whether I should still attach 1042-S as I'm reporting as a resident alien and whether I should make any statement in tax documents that the mistake in residency status doesn't make any actual difference -- I still completely fulfill my obligation. Thanks!
DS30
New Member

What to do with 1042S? 6th year F1 student...

If you are claiming a treat exemption for this income, you will want to include both the 1042-S and a state related to the exemption. I will update my answer to include reporting scholarship income on your return for a 1042-S.
lsagunner
New Member

What to do with 1042S? 6th year F1 student...

I'm sorry for the typo -- The treaty benefits are already deducted from W-2 taxable income and I did get them in 2015 (no tax withheld in the first 3 months). I'm not about to claim any benefits from the tax treaty. What I want to do is to explain my situation (why I get 1042-S and benefits from tax treaty as a resident alien) if necessary.  The amount of benefits I get is correct but I was wrongly identified as non-resident when receiving them. Thanks!
DS30
New Member

What to do with 1042S? 6th year F1 student...

You do not need to attach a statement regarding your change in residency or if you are getting the treaty benefit. You will be able to efile if you do not add this information. Just remember to get this information with your tax records for future reference.
lsagunner
New Member

What to do with 1042S? 6th year F1 student...

Thank you very much! It's very helpful!
DS30
New Member

What to do with 1042S? 6th year F1 student...

If you are an F-1 visa holder, you are considered a non-resident alien for the first 2 (non-students) or 5 (students) calendar years because you will be exempt for the Substantial Presence Test (SPT) .

Please refer to this US Tax Guide for Aliens for additional information about visa exemptions and the various filing requirements.

However, since 2015 was your 6th year in the USA, you will be considered a US resident for income tax purposes.

 You will need to enter both the 1042-S and the amount of treaty exemption (if additional treaty exemption is available)on your Form 1040 if you are a US resident alien. If you received a 1042-S then the IRS has also received a copy of this 1042-S.

You will enter the 1042-S income under other earned income (or scholarship income if it is for a scholarship grant)and you will enter the amount of the treaty exemption (if any available) as a negative amount under other miscellaneous income. You may also need to attach Form 8833 to your tax return. (Attaching this form will require that you mail in your return. You will need to select - file by mail under the file tab.)

Since Form 8833 is not supported by TurboTax, here is the link to the IRS website regarding claiming a tax treaty benefit:

https://www.irs.gov/Individuals/International-Taxpayers/Claiming-Tax-Treaty-Benefits

To enter your 1042-S for wages under other miscellaneous income:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages and Income”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose "show more", then Miscellaneous Income
  6. Choose "Other Income not already reported on a Form W-2 or Form 1099 " 
  7. Select - "Yes" for "Other Wages Received"
  8. After 3 screens, select "Yes" for "Any other earned income".
  9. On screen titled " Enter source of other earned income" - select " Other"
  10. Input the "1042-S wages" and the amount on the next screen (screenshot #1)

If this is scholarship income.

To enter your 1042-S related to your scholarship into TurboTax:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and Credit”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Education”
  5. Choose "show more", then Expenses and Scholarships (Form 1098-T)
  6. You will need to choose the student this Scholarship relates to and select "edit"
  7. Under the Education Summary page, select "Scholarships and Grants" - edit
  8. Say "yes" - to question "Did (name) receive a scholarship or grant in 2015?"
  9. Enter amount as "Other Scholarships/Grants/Fellowships (screenshot #2)

You will now need to enter a negative amount for the treaty exemption under other miscellaneous income

To enter your treaty exemption under as other miscellaneous income:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages and Income”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose "show more", then Miscellaneous Income
  6. Choose "Other Reportable Income" and enter this information here under other taxable income (screenshot #3)
  7. You should use a description related to the tax treaty article exempting the income (ie: China-US tax treaty, exemption under article 20) and the exempt amount as a negative number.


View solution in original post

elsielva
Level 2

What to do with 1042S? 6th year F1 student...

I am a F-1 visa holder for over 5 years, I only have a 1042-S from my university for last year. All the money I made on 1042-S has not been taxed, has a tax rate of 0 because of the US.China treaty. And I don't know if I need to file the 8833 or other files. Can I just file online?

KarenJ2
Expert Alumni

What to do with 1042S? 6th year F1 student...

You can file in TurboTax and include your income from the 1042-S.  You may also need to file form 8833.

 

  1. Click on Federal on the left hand side of your screen 

  2. Click on Wages & Income 

  3. Scroll down to Less Common Income 

  4. Scroll down to Miscellaneous Income , 1099-A, etc 

  5. Click on Start or Update 

  6. Scroll all the way down to Other Reportable Income 

  7. Click on Start  

  8. Add a Miscellaneous income item 

  9. Input description of your wages and wage amount 

  10. Input your Wages 

  11. Click Continue and Click Add Another Miscellaneous Income Item 

  12. Enter your treaty exemption as a negative number.  You cannot exempt more than your total wages. 

  13. The amounts will offset to zero.   You will be able to see both entries and descriptions on Schedule 1 of your tax return. 

  

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elsielva
Level 2

What to do with 1042S? 6th year F1 student...

do i need to mail the form 8833 for both federal and state tax return?

KarenJ2
Expert Alumni

What to do with 1042S? 6th year F1 student...

No, you only need to attach the Form 8833 to your Federal return and mail to the IRS.

 

It does not apply to your state tax return as it is a federal form.

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joyshubhra
New Member

What to do with 1042S? 6th year F1 student...

Thanks for your suggestions. I get a 1042-S for tax-exemption of upto $8000 due to the existing tax-treaty with my country (income code 20). This is the first time I am filing as a tax resident. So I tried to follow your guidelines, I added a miscellaneous income of $8,000 as '1042-S wages' and also to balance that out I added another  miscellaneous income of -$8,000 as 'tax treaty exemption'. However, doing these makes the total miscellaneous income as $0 and it does not show up in the 1040 form (Line 7a shows blank, which I guess should be usual, because technically the net income is $0 in this regard). Am I doing anything wrong? Please advise.

AmyC
Expert Alumni

What to do with 1042S? 6th year F1 student...

@joyshubhra No that is exactly correct. Great job!

 

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JoannaSmile
New Member

What to do with 1042S? 6th year F1 student...

About Filing Form 8833. If I am a student (also resident alien) who claims the tax treaty, do I need to submit form 8833? From the second item of "exceptions" on the website (https://www.irs.gov/individuals/international-taxpayers/claiming-tax-treaty-benefits), it seems that the income of students belongs to one of the exceptions. Does it mean that I do not need to submit Form 8833? Thank you.

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