F1 Student who changed tax status in 2024

[cmlevy]

I am an international F1 graduate student. In 2024, I passed the substantial presence test, changing my tax status to a US resident. Before this happened in 2024, I had money withheld on my stipend under "Fed 1042" on my pay stub. So I have a total stipend income for the year that is partially non-resident and partially resident for tax purposes, as indicated on my pay stub. As I understand it, I should file as a tax resident this year, but should I expect to receive a 1042S form? If so, how do I input that income and the deductions on turbotax? And do I need to report the stipend that I earned as a "US resident" on my pay stub as distinct from the amount designated as a non-resident?

[AmyC]

1. Yes, you will probably receive a 1042-S for the income. 

2. It should be reported on your tax return as if it were reported on the US version- when possible.  Here is a list of codes and meanings. We will be glad to help you correctly enter all of your income when we know the codes. This may apply to your income.

3. No, although you may end up labelling your 1042S income. Topic no. 851, Resident and nonresident aliens states: Resident aliens must follow the same tax laws as U.S. citizens. If you're a resident alien, you must report your worldwide income from all sources, that is, income from both within and outside the United States. You'll file a Form 1040, U.S. Individual Income Tax Return 

[cmlevy]

Okay thank you!

Based on previous years, I think the income code on the 1042-S will be 16. In that case where would I put that income?

And where do I put the deductions taken out from the 1042-S?

[DaveF1006]

Here is how to report your 1042 S income.

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 and record this as 1042S-Schlorship Income  and the amount.  

If there is an amount listed in Box 7A for federal tax withholding

To report the US federal  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
7. List the amount in Box 7A listed on the 1042S.

As an FYI, the only deduction or credit you may receive here is the federal tax withholding.