How to file taxes with 1042-S (income code 20, resident alien)

[katax27]

Hi, I'm a Korean F1 student with no W2 and only 1042-S working at my school. The income code is 20 and exemption code is 3a-04, 4a-16.

Due to US tax treaty with Korea and my income being under $2000, I have no income tax withheld. How should I report this and are there any other forms I need to fill out? Please be as detailed as possible because I have no idea what I'm doing. Thank you.

[LinaJ2018]

Per instructions, for income code 20, it refers to Compensation during studying and training, you will enter as follows :

• After sign in / select Take me to my return /From the top, select tab Federal Taxes /Wages and Income / Scroll down to Less Common Income section.  Choose Miscellaneous Income.  Select the very first option at the top "Other income not already reported on a Form W-2 or Form 1099".   Then follow the prompts.
• If you qualify for the treaty benefit, follow the above steps and enter the negative amount of $2,000.
• Download and fill in a Form 8833 or 8843 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf or      https://www.irs.gov/pub/irs-pdf/f8843.pdf
• You cannot e-file.  You can still use the TurboTax program to prepare your tax forms, but you need to print them out and submit by mail along with the form 8833. 

[wx1997]

Hi, I'm a little confused when you said "the negative amount of $2,000". If I earned $663 from the school with the tax treaty exemption, does it mean that I should type -$1,337 when claiming it?

[MarilynG1]

@wx1997 Report your income of $663 in the 'Other Income' section, then make a second entry of -$663, with the description of 'Tax Treaty Income'.

This gives a net effect of $0 income.

Click this link for more info on Tax Treaty Income. 

[wx1997]

Thank you so much for the information, this is really helpful. One further question: should I report through employee compensation that was not reported on a W-2 or the other option? If I go with the first option, seems like there is no place for me to type the description. 

My current report routine is : 

1. less common income.

2. Miscellaneous Income, 1099-A, 1099-C

3. Other income not already reported on a Form W-2 or Form 1099 (not sure about this also, should I go with the last option: other reportable income?)

Since I already had a 1042-S form, I don't think it's necessary for me to file the SS-8 form so I'm a bit confused about this. 

[ruhtra86]

Must you have Deluxe to be able to file with 1042-S? 
I too am a resident alien for tax purposes with no W-2, only 1042-S, and with code 20. 

When I go to "Less Common Income-Miscellaneous Income", it tells me that I should purchase Deluxe to keep filing...

Thanks.

[JohnB5677]

The 1042-S is for Foreign Person's with U.S. Source Income Subject to Withholding

If you haven't been in the US more than 5 years, you need to file a non resident return.  

Although TurboTax doesn't support IRS Form 1040-NR (U.S. Nonresident Alien Income Tax Return), we have partnered with Sprintax to offer both federal and state tax preparation for international students, scholars, and nonresident foreign professionals.

Please visit the TurboTax/Sprintax site for more info.

If you have been in the US for five years or more, You will need to enter the income in the self-employment section of TurboTax. 

You will need  TurboTax Self-Employed you will post this under:

• Income & Expenses
• Self-Employment Income & Expenses
• If you've already started entering the business you will select REVIEW
• Select Add income for this work
• Under Common Income
• Select Form 1099-NEC

You may need to upgrade to include this income

@ruhtra86

[ruhtra86]

Thank you for the reply. 

I am have been in the states for more than five years. I have worked the same part-time job for about three years now and have filed with Turbo Tax free successfuly in the first two years. 

Given my situation, is there an alternative that I could file for free? The income from this part-time job is very minimal and the cost of either TurboTax Deluxe or TurboTax Self-Employed will be comparable to whatever tax refund I am hoping to receive. 

Is there an alternative that I can file for free with Turbo Tax? I have read elsewhere of people in a similiar situation with me filing with the IRS Free File Program delivered by TurboTax? If that works, should I file as self-employed with my 1042-S even though I am employed and paid by the University? 

Thank you for your time.

[LinaJ2020]

Yes, you can use either the TurboTax Free or the IRS Free File program.  You are not self employed with the Form 1042-S. 

You would enter under "Other Income".  See my post from above.

This amount will show on line 8 of Schedule 1 and Form 1040.

@ruhtra86