How to file 1042-S

[yp9999]

Hello, I am a Phd student and a resident alien. I got From1042-S from my school and I am not sure how to e-file it. I read that we should use the less common income. Does that mean fill in my gross income in From1042-S to the less common income and then fill another deduction for the amount under federal tax withheld?

I tried doing this but then suddenly I need to pay for more state tax which is confusing to me.

[DaveF1006]

Here is the correct way to report if you didn't report it in this manner.

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 enter description and amount. Here put in 1042S income and then the 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

You may need to pay more state tax because it is taxable income to the state as well as federal. The tax that was withheld was federal tax but not state so you will not get credit for it in your state return.

@yp9999 

[yp9999]

I also have exemption code 00 in 3a and 16 in 4a. Should I also put -the same amount considering it's a fellowship/scholarship?

[DMarkM1]

I'm not sure what you mean by "put the same amount in."  There is still no state withholding to enter from the form 1042-S and likely that will result in an increased state tax. 

The 00 in box 3a indicates federal withholding was under chapter 3 in the form 1042 instructions for a foreign person.  The code 16 in box 4a indicates an exemption from chapter4 federal withholding as a nonfinancial payment as you are not a financial institution.  

A code 16 in box 1 would identify the income as "Scholarship/Fellowship Grant." 

Here is a link to the form 1042S for more detailed information if needed.   

[Dyba2003]

Do you file the amount of gross income or the federal tax withheld? 

[AmyC]

The gross amount is used for reporting the income. Then you need to enter the tax already paid.

Follow these steps:

1. Open your return
2. Go to the federal section for deductions and credits
3. Locate Estimates and Other Taxes Paid
4. Select Other Income Taxes
5. Locate Other Income Taxes Paid in 2022
6. Select Withholding not already entered on a w-2 or 1099
7. Enter amount under Federal withholdings
8. Continue

@Dyba2003 

[ajmalsheikh]

Will these same steps be applicable for a non-resident alien?

My situation is different (preparing my taxes early):

I am not in the USA since 2018, I recently made an early 401K withdrawal which has withheld federal taxes for which I believe I will be eligible for a refund (as the amount comes in a lower tax slab). I will get a 1042-S around March 31st 2024, but unable to locate the appropriate place where I shall fill in the details.

Also, will I be eligible to file for an extension for filing my taxes in case the document doesn't reaches to me on time (I will be located internationally, outside of USA and the paper mail containing 1042-S might get delayed in reaching me)

[SusanY1]

A nonresident alien who is not treated as a tax resident will file form 1040-NR which is not included in TurboTax.  We recommend Sprintax.com for nonresident alien filings.  

All taxpayers who reside outside of the US receive an automatic extension to June 15 to allow for receipt of documents.  However, you can request an extension through October 15 if needed by filing Form 4868.  

Tax rates differ on form 1040-NR, so you may find that the withholding amount equals the tax, as is often the case for nonresident taxpayers on income that isn't considered "effectively connected" income.  

If you were/are a permanent resident (ever held a green card), you may be required to file form 1040 instead of 1040-NR unless you have formally surrendered your green card.  

@ajmalsheikh 

[ajmalsheikh]

Thanks @SusanY1 This info is helpful

[mkashish]

Hi, where you able to get the tax back for this scholarship?

[DaveF1006]

It depends.  First you need to report this as income and then you report the tax that was withheld. here are the steps for both.

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, call this 1042S scholarship income and then list the amount.

To report the withholding.

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