Apart from W-2, I received 1042-S, income code 06. What am I supposed to do with this form?

[atouris31]

Should I include this somewhere on my 1040 form?

[Belling · Accepted solution]

Form 1042-S is used to report amounts paid to foreign persons that are subject to income tax withholding, even if no amount is deducted and withheld from the payment because of a treaty or exception to taxation, or if any amount withheld was repaid to the payee. It is also used to report amounts withheld under Chapter 3 of the Internal Revenue Code.

Sometimes, this form is mailed out strictly for informational purposes and therefore does not need to be included on your return. This is often the case when Resident Aliens receive this form. 

The significant items  on the 1042-S form are Box 7 and Box 10. Box 7 is US Federal Tax Withheld and Box 10 is Withholding Credit.

If both of those boxes are 0, then nothing was withheld and there is no withholding credit and the 1042-S form is just for your informational purposes. 

• Income Code 06 on Form 1042-S is used to report Dividends paid by U.S. corporations – general.

• Complete instructions for filing your income reported to you on Form 1042-S for tax year 2015, as well as descriptions of all other income codes reported on this form, can be found at the following IRS site: https://www.irs.gov/pub/irs-pdf/i1042s.pdf

• TurboTax does not directly support the filing of Form 1042-S, but since yours is reporting U.S. corporate-paid dividends, you can report these amounts in TurboTax under Investment Income. You will enter your information in TurboTax under dividend income reported on Form 1099-DIV.

• Also, see the following TurboTax Faq if you need to file a 1040NR NonResident Alien Return: https://ttlc.intuit.com/replies/4028799

[atouris31]

Thank you so much for your answer. I have not received form 1099-DIV. My net income on form 1042-S is reported 0.00. Thus am I supposed to report anything?

[atouris31]

Just a note, I am a resident alien for tax purposes and my 1042-S (why did I receive that, I am a resident alien) form mentions that the total withholding credit is > 0. Income code is 06.

[Belling]

So, is there any income being reported on your Form 1042-S or the only amount(s) on there shows 0?

[Belling]

Also, How long have you been a Resident alien of the U.S. and did you ever receive Form 1042-S in past tax years?

[atouris31]

I have been a resident alien for 3 years already. In the past I have received a 1042-S, because I was doing research and there was a tax treaty between my home country and US. Currently I work at a company and for sure am a resident alien. On my 1042-S form the income code is 06, gross income is >0, chapter 3 is checked and total withholding credit (box 10) is >0. Thank you!

[Belling]

You do not need to file. Please see my updated answer for the details. I hope I was helpful to you!

[ankur280]

@TurboTaxBelling - You have mentioned that "This is often the case when Resident Aliens receive this form", does this mean in some cases even Resident Aliens have to report this form?

[TaxGuyBill]

@ankur280  You need to report your income, regardless on what form it is on (or no form at all).

Report your income (if you don't know where, post a new question asking about it, and specify exactly what type of income it is).

If you are a Resident Alien, you should also contact the company that issued the form to get things corrected for next year.

[bine22]

I agree with TaxGuyBill, you definitely have to report this income (as a 1099DIV). Provide the broker-bank etc. form W9 to have the correct form next year (assuming you are staying in the US )

[vecnezivec]

Hello, I have a question.... I received 1042-s form And I have amount of 489$ in box 7. I received in Vegas but I am from Czech republic. I was told that I could get some of this amount Back in my country. Is that right? What can I do? Thx, Jan

[TaxGuyBill]

When you file your US tax return (if you are a Nonresident Alien, you can NOT use TurboTax), that will determine your actual taxes.  You could get some or all of the $489 refunded, or you may owe more taxes.

If you ALSO owe taxes on that money to the Czech Republic, you may be able to get a "Foreign Tax Credit" that would reduce or eliminate any taxes owed on that money.

At any rate, you will need to file a US tax return.  If you are a Nonresident Alien or a Dual Status Alien, TurboTax does not do those types of tax returns, and I highly recommend going to a tax professional.
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[icetritium1332]

Hi I am a student with fellowship and I have 1042-s with income and tax credit.. where do I fill that?

[TaxGuyBill]

@icetritium1332   Are you are a tax-Resident or are you a Nonresident Alien for tax purposes?

If you are not sure, please tell us (1) what type of visa you have (if any), (2) how long you have been in the US for the last 4 years, and (3) if you are married, answer those same questions about your spouse.