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Level 1
posted Jan 29, 2024 5:19:31 PM

1042-S *from another state* when resident alien

Hi,

 

I have a similar question to Where to enter this 1042-S? with a new caveat.

 

I'm a resident of Connecticut (CT) and obtained my green card at the end of last year. I received a small honorarium (3k) from California (CA) which involved remote work and an in-person presentation in CA (stayed there for 4 days). The payers withheld federal and state taxes and sent me a 1042-S.

 

In addition to filing for a federal tax refund as explained in Where to enter this 1042-S?  do I have to file returns for both CA and CT? When I do both, I get a significant tax deduction from CT (4.2k) and I owe taxes in CA (3.5k), is this normal even though I went there for only a few days and earned only 3k? 

 

Thanks!

0 3 1176
1 Best answer
Expert Alumni
Jan 30, 2024 10:29:36 AM

Yes, it is not uncommon to owe taxes in one state and pay taxes in another. This is like one hand washing the other.  Make sure you prepared your Ca non-resident return first so that the taxes paid in California will be properly credited to your Connecticut resident return. Check your returns though to make the proper allocation of incomes are properly reported between the two states. 

 

Now, let's address how to enter the 1042S, along with getting credit for the tax that was withheld.  

 

To report the 1042-S

 

  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 Enter description and amount 

  

To report the US tax paid:

  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

@Crassus77 

 

 

3 Replies
Level 2
Jan 30, 2024 8:19:36 AM

You've raised several questions.

 

While getting your green card makes you a US resident for tax purposes, you may have already been a tax resident based on other rules, the "183 day test". This gets complicated so you may need professional help. Tax residents are taxable on their worldwide income, no matter where earned. So you would include the 3k with the rest of your US income when filing your 1040. The foreign tax credit is intended to avoid double taxation, in case there is a Canadian liability.

I do not know if Canada requres you to file, but you should be abe to check this online at the CRA website. There is an income tax treaty between the US and Canada that may impact your situation. This is available online at the IRS site.

From a common sense perspective though, I doubt if there is 3.5k of Canadian tax on 3k of income. The same for CT. 

 

 

 

 

 

Level 1
Jan 30, 2024 10:06:11 AM

Thank you for your response! I didn't make myself clear. The honorarium came form California (CA), not Canada. I'm sorry for not making myself clear. 

Expert Alumni
Jan 30, 2024 10:29:36 AM

Yes, it is not uncommon to owe taxes in one state and pay taxes in another. This is like one hand washing the other.  Make sure you prepared your Ca non-resident return first so that the taxes paid in California will be properly credited to your Connecticut resident return. Check your returns though to make the proper allocation of incomes are properly reported between the two states. 

 

Now, let's address how to enter the 1042S, along with getting credit for the tax that was withheld.  

 

To report the 1042-S

 

  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 Enter description and amount 

  

To report the US tax paid:

  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

@Crassus77