Correct way of reporting 1042s form (federal tax withheld: income code 16) on Turbotax?

1-Turbotax does not support form 1042s directly, but you can enter the income based on the income code. 

Because you are a resident alien and you have received a form 1042S where you report the income depends on the income code and why the form was generated.  See page 18 for a description of income code.IRS Instructions Form 1042-S.

This income can be entered as miscellaneous income.  When you sign into your TurboTax account you can follow the steps below.  

1. Select the "Federal" tab in the black navigation bar on the left
2. Select "Income & Expenses"
3. Select "Add more income" button if necessary
4. Scroll and click "See the list of all income" 
5. Scroll to "Less Common Income" and select "show more"
6. Select "Miscellaneous Income"
7. Scroll and select "Other Reportable Income"
8. Click "yes" then enter the description and amount (this will show up on line 21, Form 1040)

2-The entry steps you have in your question is correct.  Enter the federal and/or state withholding here:

• Deductions and credits/Other income taxes/Yes/Other income taxes paid in 2017/Withholding not already entered on a W2 or 1099

3-The results should be correct following the steps above.

You should file your return by mail so that you can attach your Form 1042-S to the return.  

Thanks for the answer 🙂 I have another question! Other comments on the similar question recommend 'Other income not already reported on a Form W-2 or Form 1099' instead of 'Ohter reportable income'. Two different options don't make any difference in estimated refund. Do you think they are different substantively?(meaning that one is correct and the other is wrong and may cause a problem in the filing process). Thanks!

@inkwan82 I advise my method if you are not required to pay social security and medicare tax.

Dear Diane,
I have the same situation. I live in NJ (become a resident alien on July 3rd, 2018) and I have a 1042-S from my previous institution in California. When I follow your method, it results in $1,012 NJ tax due. Would you recommend combining it with W-2?

I am in similar situation. how did you end up paying NJ taxes for 1042-S?

Are you a resident of NJ?  What is the 1042-S income code?  Is there tax withheld?

I am in a similar situation. 6th yr PhD student. Resident alien for tax purposes. Received 1042-S form with income code 16.

Do I need to upgradte to Turbo Tax Delux to follow your instructions and add "other reportable income"?

You do not enter it as Other Income.  You will treat it as receiving a scholarship or fellowship to offset your qualified education expenses if there are any.  If you are prompted to upgrade, please do so.  Here are the steps:

In TurboTax online edition, 

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in "1098t" and Enter
• Select Jump to 1098t
• On the screen, Now Let's gather XYZ's Additional Education Expenses
• Follow prompts
• Next screen, Your Education Expenses Summary, select Edit
• Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information

@Ruba

This is confusing for me. Am I supposed to add the income reported on 1042-S form under 1098t? Those are not the same.

IF this is Scholarship income, first enter the 1098-T. Continue through the interview and you will have an opportunity to enter scholarship amounts NOT listed on the 1098-T. Enter it there. 

So I filed already before I received this form. Can I file again by including this? Or I can file next year by including this info? Since I already got refunds, if adding this it will be much less.

@the way to report any missing information after you have filed, is via an amended tax return. The following FAQ provides those general steps: Amending a return in Turbo Tax.

I'm a current postdoc at NIH so received a 1042s, but a resident alien for tax purposes. If your only income was through fellowships via NIH, do you put $0 for federal income and all of it down as miscellaneous?

Your 1042-S will be considered Federal Income.  Here's how to enter it:

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 

9. 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

Hello!

The above explanation for reporting 1042S helped me quite a bit. 

I am a resident alien for tax purposes resided in WV throughout the year. I have a W2 from my previous employer in WV. Along with that by my current employer (in MD), I was given a 1042S. Using the above trick I added the 1042S and the tax withheld info. There is no mention of state tax withholdings on the 1042S. What do I do in this case?

Also, can I e-file my tax return? I remember I filed taxes as a non resident alien by mailing the forms. I have already attached my 1042S in the other forms on turbo tax. Also, my tax info page shows me as a "resident" will this affect my tax return with the 1042S form?

Thanks!

To clarify, is your 1042S issued by an American Employer who has already issued a W2 with the same withholding amount and income reported? 

Not the person who posted the question, but I have received 1042-s along with W2 and I have income code as 06. Do I still need to add it to other reportable income or should I report this in 1099-DIV? Also, can I efile this (without 1042-s) or should I mail my returns? I am a resident for tax purposes.

No you should report this if you have an amount listed in Box 2 of the 1042-S form. Here is how to file and you should be able to efile once finished. 

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 
9. Enter description and amount 

To report the US tax paid (if you paid tax):

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 paid in 2021
6. Click on Withholding not already entered on a W-2 or 1099

@saulgoodman

Yes, I have an amount of $348 in box 2 and $104 in boxes 7a and 10. So I am assuming federal tax has already been withheld for the income and I'll report it as below. The two questions I have are:

1. Why can't I report this as I usually report dividends in a 1099-DIV form (since the income code in 1042-S is 06)?
2. Can I eFile using TurboTax with the caveat being that I can't attach my 1042-S along with my return?

You may enter this as dividend income or the way I suggested above. Enter $348 as an ordinary dividend in Box 1A and the income withheld in box 4 in the 1099-DIV entry.

Either way, you will be able to efile. You won't need to send in the 1042-S but keep with your return if the IRS contacts you later.

@saulgoodman