Hi, I'm on H1B visa for almost 2 years now. I received form 1042-S because I received some dividends from my investments. Income Code - 06 ; Box 2 $600 and Box 10 $150. Since I have been on H1B the whole year, I'm considered a resident for taxation purposes. I'm still unsure why I got 1042-S and how I can file it on Turbotax?
I tried using 1099-DIV form but it's not super clear how to enter Box 10 details since it is not 0.
Any help is appreciated.
You received a Form 1042-S because you were still considered as a nonresident for immigration purposes. They use the form to report any non-resident alien wages and tax withholdings. As a resident alien for tax purposes, you file your taxes like a U.S. citizen using Form 1040. You will report income from tax forms including W-2, 1099s and 1042-S on the appropriate line of Form 1040 when you file your federal tax return.
You will enter this transaction as if you received a 1099-DIV.
Here are the steps:
In TurboTax online,
If you are referring to box 10 on the Form 1042S, read here:
Enter in Box 10 the combined amounts reported in Box 7a (federal tax withheld), Box 8 (tax withheld by other agents), and Box 9 (over withheld tax repaid to recipient pursuant to adjustment procedures).
Example.
If the box 7a amount is $600, the box 8 amount is $120, and the box 9 amount is ($50), the box 10 amount will equal $670. To see IRS instructions, click here: https://www.irs.gov/instructions/i1042s#idm139964838715504 ( Search Box 10)
So, if you have your federal income tax withholding in box 7a on 1042-S, you will enter it in box 4 on the 1099-DIV replica screen.
You received a Form 1042-S because you were still considered as a nonresident for immigration purposes. They use the form to report any non-resident alien wages and tax withholdings. As a resident alien for tax purposes, you file your taxes like a U.S. citizen using Form 1040. You will report income from tax forms including W-2, 1099s and 1042-S on the appropriate line of Form 1040 when you file your federal tax return.
You will enter this transaction as if you received a 1099-DIV.
Here are the steps:
In TurboTax online,
If you are referring to box 10 on the Form 1042S, read here:
Enter in Box 10 the combined amounts reported in Box 7a (federal tax withheld), Box 8 (tax withheld by other agents), and Box 9 (over withheld tax repaid to recipient pursuant to adjustment procedures).
Example.
If the box 7a amount is $600, the box 8 amount is $120, and the box 9 amount is ($50), the box 10 amount will equal $670. To see IRS instructions, click here: https://www.irs.gov/instructions/i1042s#idm139964838715504 ( Search Box 10)
So, if you have your federal income tax withholding in box 7a on 1042-S, you will enter it in box 4 on the 1099-DIV replica screen.
Thank you so much @LinaJ2020 for your quick response. This is very helpful. Does this mean I can't file electronically and print out the forms and file manually along with 1042-S form?
No, you should still be able to file electronically. If you encounter errors preventing efile, you can delete the replica 1099-DIV and enter the income as Less Common Income, Miscellaneous Income and the withholding under Deductions and credits, Estimates and Other Taxes Paid, Income Taxes Paid.