IRS Form 1042-S

[Lalit87]

I got IRS Form 1042-S. IRS withhold 14% Federal Income Tax from my stipend payments. How can i report ?

[pk]

@Lalit87 , 

(a) which country are you from -- for  Treaty considerations  ( India ? ) ?

(b) What visa are you on ?  When did you enter the country ?  Was this your  fist entry ?

(c) Source of your stipend -- is it foreign or  from your school or what ?    Is it a private stipend ?

(d) Who issued the 1042-S ?

(e) Which state are you in ?

I will circle back once I hear from you ? 

[Lalit87]

(a) which country are you from --  India

(b) What visa are you on ?J1 When did you enter the country ? Feb 2024 Was this your fist entry ? Yes

(c) Source of your stipend -- is it foreign or from your school or what ? Is it a private stipend ?Oak Ridge Associated Universities USA

(d) Who issued the 1042-S ?Oak Ridge Associated Universities USA

(e) Which state are you in ? Maryland

Thanks !

[pk · Accepted solution]

@Lalit87 , from your answers , I am assuming that you are here as a trainee/student  ( article  21 applies ) and not as a teacher/ researcher ( article 22 applies ).

Thus  you have to recognize the income ( US sourced  income only ), file a form 1040-NR  ( not supported by TurboTax -- use your school's foreign student office suggestion or use something like  SprinTax).  Note that  unlike many other treaties, US-India tax treaty  asserts that you be given the same benefits as a  US student in similar circumstances.  This generally allows you to use standard deduction  instead of itemized  deductions mandated for 104-NR filers.   I would suspect that your case is pretty simple and you may be able to just download the 1040-NR form  ( fillable .pdf ) and  file by mail. 

Note that for a US student , stipend etc. has two components/ expenses   --  school fees/tuition which is deductible and living expense which is taxable income .  Please consider going over the details of your stipend award letter to be sure.

Is there more I can do for you   -- you can add here or PM me ( just no PII -- Personally Identifiable Information ).

Namaste ji

pk