How should a qualifying resident report form 1042-s?

[rrou]

I am an international student who qualifies as a resident for tax purposes, but received 1042-s, and I am wondering how should I report that amount using Turbotax as I don't see 1042-s as one of the forms that I can fill out? Thanks!

[DaveF1006]

Yes, here is how to file a 1042-S using Turbo Tax.

1. Log into your account
2. Select Wages and income>
3. Less Common income 
4. Miscellaneous Income, 1099-A, 1099>start
5. Scroll to the bottom of the page to Other Reportable Income
6. Other taxable income, answer yes
7. Then give a brief description of the income and the amount listed. Here describe this as 1042-S and then the amount.

If withholding tax was paid with the 1042-s, here is how to report.

1. Go to Federal 
2. Deductions and Credits
3. Estimates and Other Taxes Paid
4. Other Income Taxes 
5. Other income Taxes paid in 2023
6. Withholding not already entered on a W2 or 1099. 

[marinaaa]

I had exactly the same issue, but after I filed my 1042-S income as miscellaneous income, since I'm under 24, TurboTax thinks it's unearned income for children and is asking me to fill out the forms proving my parents are deceased or filing separately... Is there a way around that?

[JamesG1]

What income code is reported in Box 1 Income Code?

Box 1 Income Codes are found here on page 37.

The income may allow you to report the income other than what will qualify for IRS form 8615 treatment.

@marinaaa 

[marinaaa]

It's a scholarship with income code 16, listed as "other income" on page 37.

[KrisD15]

You can enter the amount in the Education Section. 

It will be reported as scholarship income on Schedule 1 line 8r.

Under Deductions & Credits

Education 

Expenses and Scholarships (Form 1098-T)   START or UPDATE

Continue as if you are going to enter a 1098-T

You might have to continue through screens asking about a 1098-T

Eventually the program should tell you that you are not eligible for an education credit 

Next the program will ask about Scholarships and Financial Aid

Continue

Select YES, a drop-down allows the entry for the scholarship reported on 1042-S.

This should not generate the Kiddie Tax. 

[Yanezmar000]

How do I fill out tax withheld on my 1042-S on turbotax? I need help filling out the amount  on the amount box. I also received 4,1042-S tax forms from when I won at the casino. How should i report this? 

[SusanY1]

If you qualify as a resident and will be filing Form 1040, you want to enter the 1042-S data in the area of the program that most closely corresponds with the type of income being report.  For gambling winnings, you can simply use the "Miscellaneous Income", "Other Reportable Income" in the section for Less Common Income.  

@Yanezmar000 

[Elianabc]

Hi, I ´m in a similar situation. I am a postdoctoral research fellow and I received a stipend associated with a 1042-S form. As a Spanish citizen who has been here less than 5 years, I am aware of the existence of a Spanish tax treaty regarding the 1042-S, exempting me from Federal taxes. I am resident for tax purposes but not sure how to file all this on turbotax. Box 3a "exempetion code" of this form is 04; and box 4a "exemptions code" is 16. Could you help me with this? Thanks

[AmyC]

Exempt income under the treaty and excluded nonfinancial payment. What you don't say is the income code, I am guessing scholarship income. If so, we can follow the advice of @KrisD15 above to enter the income but then we need to subtract it back out.

1. Open to federal  Deductions & Credits
2. Locate EDUCATION
3. Select Expenses and Scholarships
4. Tell the program you don't have a 1098-T
5. The program should tell you that you are not eligible for an education credit 
6. Continue to enter scholarship on the screen that asks if you received a scholarship you have not yet reported.
7. Select YES, a drop-down allows the entry for the scholarship reported on 1042-S.

This will put your income on Sch 1 now we need to remove it. You can subtract the income and claim tax treaty benefit as the reason. Follow these steps:

1. Open to federal income
2. You may need to show other income or less common income
3. Locate Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description Tax Exempt under treaty
9. Amount, enter your negative amount -use a minus sign in front.
10. Continue

Lastly, determine if you need to file Form 8833.  The payee does not have to file Form 8833 for any of the following situations:

1. The payee can claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate.
2. The payee can claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.
3. The payee can claim a reduction or modification of taxation of income under an International Social Security Agreement or a Diplomatic or Consular Agreement.
4. The payee is a partner in a partnership, or a beneficiary of an estate or trust and the partnership, estate, or trust reports the required information on its return.
5. The payments or items of income that are otherwise required to be disclosed total no more than $10,000.

If this describes your situation, you are in good shape, add the income, subtract the income, e-file.

@Elianabc