How to file form 1042-S with income code 16, exemption code 4 in box 3a using turbo tax?

[lukas]

I am a research associate who changed my position in 2019.  As a result, I have 1042-S and W-2.  I need help on 1042-S filing using turbo tax. 

Here is the information I have.  I am a resident alien for tax purpose.  My income code is 16.  Chapter 3 with Box 3a (exemption code) is 4 and Box3b (tax rate) is 00.  The Box 7a (Federal tax withheld) has $$$.

It seems I have to jump 1098T to enter the information.  However, I am not sure which Box I need to use in 1098T.  Box 1 is tuition and Box 5 is scholarships/grants.  I was not a student but a post-doctoral fellow. 

For tax withheld, I guess I have to enter the amount in estimate paid in estimates and other income taxes paid. 

Once done, do I have to submit 1042S to the IRS by mail?  Or will TurboTax be suffice?

By the way, I have been in the US for over 5 years so the tax treaty is not applicable.

Many thanks in advace.

Thanks in advance for the help. 

[KrisD15]

Code 16 would signify scholarship income. 

If the 1042-S is reporting the scholarship, and it is taxable, you can enter it in the Education Section under Deductions & Credits, but don't report a 1098-T if you didn't get one. Answer "No" that you didn't receive a 1098-T and "No" you don't have an exception, the screens that follow should allow you to enter the scholarship amount only. (without the 1098-T) 

Yes, enter the tax withheld under "Estimates and Other Taxes Paid" 

Your return should be eligible for e-filing. Since the amount from the 1042-S will be on line 1 of your 1040, there is no reason to mail that form in, but do keep a copy with your tax files. 

[lukas]

Kris,

Thank you for your reply.  It is very helpful.  I am going to enter the information as you recommend.  A question I have is what tax rate is indicated by exemption code 4 in box 3a and tax rate 00 in box 3b in the Form 1042S.  I thought that gross income multiply by tax rate is what goes in federal tax withheld box 7a, which would be 0 if the tax rate is 0% as in box 3b.  I just wanted to understand the Form 1042S. 

Thank you in advance

[DaveF1006]

Box 7A is the amount of income tax actually withheld by an employer because they chose to withhold it.. The tax amount withheld can be calculated by multiplying box 6 (net income) by box 3b (tax rate) but is not always the case.

[lukas]

Dave,

Thanks for the reply.  Interestingly, I noticed that box 6 (net income) is empty.  I have $$$ in box 2 (gross income).  How should I understand this difference in box 6 and box 2?

Regarding the withholding, is it correct understanding that I would get the withheld income tax back as box 3b (tax rate) is 00%? 

Many thanks

[lukas]

When I tried to enter the tax withheld under "Estimates and Other Taxes Paid", it stated that I have to enter the amount per quarter.  And it states that estimated tax paid is uncommon as withholding is more common.  My 1042S box 7a is withholding and I would like to just double-check what I am doing is right.

[KurtL1]

To enter the withholding on you 1042-S you should:

• Enter Estimated Payments in the Search Magnifying Glass in the upper right hand corner of your screen.
• Select Go to Estimated Payments in the Blue box.
• Toward the bottom of the screen there is a section Other Income Taxes Paid in 2019
• Select Withholding not already entered on a W-2 or 1099
• Enter the withholding from the 1042-S

[hennapopli]

Replying to ', the screens that follow should allow you to enter the scholarship amount only. (without the 1098-T) '

The screen doesn't allow me to do that. It insists on entering School Information as on 1098-T. I did say I do not have 1098-T. Please help.

[AmyC]

The 1042S is not supported so you have to enter the parts separately. 

For the income:

1. Go to federal
2. to Income and Credits
3. to last section, Less Common Income
4. bottom selection, Miscellaneous Income
5. Start
6. bottom selection, Other Reportable Income
7. Start
8. Any Other Taxable Income?
9. Yes
10. 1042S income and enter the total

If this is treaty related income, you would add another line for the treaty and a negative dollar amount.

@hennapopli  another option for you

[Maen]

Hi Amy,

This is very helpful. However, after doing these steps should, where should I enter the amount of withholdings?

[AmyC]

@Maen to enter tax withheld on the 1042-S.

1. Go to the federal section
2. Deductions and credits
3. Scroll down to Estimates and Other Taxes Paid
4. Select Other Income Taxes - start
5. Scroll down to Withholding not already entered on a w2 or 1099, start
6. Enter amount

[Maen]

Thank you Amy, your are really amazing. However, I still have one more question, do I need to file the 1042-S separately by mail to IRS after i do it on TurboTax?

[KrisD15]

No, if the information from the 1042-S is included on the 1040 (although as individual entries, not as a 1042-S Form) there is no need to also mail the 1042-S. 

Keep your copy of the 1042-S with your tax file. 

[ptchi2026]

Hi @AmyC, your reply is really helpful. 

However I have another problem with this. Although I was able to add the federal tax withheld tax, that amount unfortunately is greater than the income that was report on my W-2. I can not find way to report the gross income from 1042-S form neither. What can I do? 

[AmyC]

The 1042S is not supported so you have to enter the parts separately. 

For the income:

1. Go to federal
2. to Income and Credits
3. to last section, Less Common Income
4. bottom selection, Miscellaneous Income
5. Start
6. bottom selection, Other Reportable Income
7. Start
8. Any Other Taxable Income?
9. Yes
10. 1042S income and enter the total

I don't think yours is but IF this is treaty related income, you would add another line for the treaty and a negative dollar amount.

@ptchi2026