How to file 1042-S form (income code 20, resident alien, exemption code 04)

[juk_mi]

Hello, I am a resident for tax purposes, and this year I started my PhD program. I received the W-2 form, but along with it, I also received the 1042-S. The income code is 20, the exemption code in box 3a is 04, and in box 4a, it's 16. How do I report it in my tax return properly? Could you please explain it step-by-step, as I am already very confused by the process... If that is important, I am from Poland, and to my best knowledge Poland and the US have a tax treaty. I appreciate any help you can provide.

[Anonymous_]

Not sure whether @pk can help but stay tuned.

[pk]

@juk_mi , please give me a little time -- I am not familiar with US-Poland tax treaty  -- need to study it a bit.

In the meantime  can you tell me  __ when did you enter US  and with what visa? ; was this your first entry into the USA? ; the 1042-S was  from the same employer as the W-2?; was this your first employment?; are you single or married and if married to whom ( US person / foreign person)?; anything else that you could think of

I will come back once I have gone through the treaty --- thank you

[juk_mi]

Hello, thank you for reaching out @pk ! 

I got into the US in August 2018 (on an F-1 visa) and stayed until September 2019. Then I came back to the US in August 2020 (on a J-1 visa) and have been on a J-1 visa until July 2022 (last year I filed my taxes as a resident for tax purposes). This year (in August) I started PhD program on an F-1 visa and according to my school I passed the "substantial presence test" so I am a resident alien.

I got two W-2s (one from my previous employer, until July 2022 + the other from the university where I am a PhD student); this is not my first employment. I got the 1042-S from the university where I am a PhD student. I am filing taxes as a single person and before my stay here on F-1/J-1 visas I visited the US several times on B-2 (4 times, up to 1.5 months). 

I found the treaty between PL and US https://www.irs.gov/pub/irs-trty/poland.pdf (article 18) but I am not sure which part applies to me...

[pk]

@juk_mi , thank you for your response to my questions.  I have gone through the  US-Poland treaty and as  you found out article  18 . 1 (a)1,   18.1.(b)  clearly apply to you.    I think what happened here is that you must have submitted a form 8233 ( signed and filled out )  to your employer ( school ). Thus they are following  the requirements of the treaty and providing informational form 1042-S to you and the IRS - in that they  have not withheld taxes  ( under treaty ) for the first $2000 of your income from the Univ.   I suspect that they have deducted this income from your W-2  and therefore there is nothing for you to do on this  --- file  your 1040 per your W-2s and ignore the 1042-S, but of course keep as part of records.  This means you can e-file.

Can you confirm with the school that this is so  ?

pk