1042-S form with income code 1 and a separate 1099-int

I am a U.S citizen and my wife is a H1b status holder. We are filing jointly for 2021 tax year and she passes the substantial presence test so she will be a resident alien for tax purposes.

She got for 2021 a 1042-S Foreign Person's U.S. Source of Income Subject to Withholding document with income code 1 from the IRS. The only information this has is only federal income tax withheld. I think (but am not 100% sure) that this is from the withholding on the interest income paid to her by IRS in 2021. She also got a separate 1099-int form for her with total interest paid by IRS.

My understanding was 1042-S is only for non-resident aliens.

How should these document be reported in turbo tax given she is now filing as a resident alien? Do I just include all the info as a part of one 1099-int report?

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1 Best answer

Expert Alumni

Apr 4, 2022 8:51:26 AM

Yes, code 1 on Form 1042-S is interest income.

You can enter the taxes withheld like this:

Open your return
Click “Deductions &Credits” on the top
Click "I'll choose what to work on"
Scroll down to “Estimates and other Taxes paid” and click “Start” next to "Other Income Taxes"
Scroll down to "Other Income Taxes Paid in 2021" and select "Withholding not already entered on a W-2 or 1099"

Expert Alumni

Apr 4, 2022 8:51:26 AM

Yes, code 1 on Form 1042-S is interest income.

You can enter the taxes withheld like this:

Open your return
Click “Deductions &Credits” on the top
Click "I'll choose what to work on"
Scroll down to “Estimates and other Taxes paid” and click “Start” next to "Other Income Taxes"
Scroll down to "Other Income Taxes Paid in 2021" and select "Withholding not already entered on a W-2 or 1099"

Level 3

Apr 4, 2022 9:43:58 AM

Thank you!

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1042-S form with income code 1 and a separate 1099-int