How to report both W-2 and 1042-S form using Turbo tax free?

[dcm28623]

Hello,

I am an F1 Post Doc, and this year, I received both W-2 and 1042-S (Income code 16  - Exemption code (4b) 15) forms. Also, boxes 7a and 10 on 1042-S have both written 95 on it.  

I want to know how to report these forms when using the free version of Turbo Tax. Do I need to do both of them at the same time, or can I file them separately?

Thanks.

[VictoriaD75]

TurboTax does not directly support the filing of Form 1042-S. You will need to file a Form 1040-NR. See the information in the link below.

Form 1040NR

[dcm28623]

Thanks for your reply Victoria. I noticed that the 1040-NR is for non-resident aliens, however this year I am a Resident alien for tax purposes. Can I still use the 1040-NR form?

Also, do you know if I can file only my W-2 using Turbo Tax free first and then file the 1040 NR form later? or do I need to file them simultaneously? 

Thanks!

[dcm28623]

Hi Leonard,

Thanks for your reply. I was told by the tax agent of my university that instead of using the 1040 form, on my tax return, I could enter the amount on the 1042S under other earnings and specify scholarship.  Then, to add the tax withheld from that to my federal tax withheld on the W2 form. Is this accurate? Thanks.

[LeonardS]

No, you have to file Form 1040 to report your W-2 income.

[dcm28623]

Hi Leonard,

Got it. One last question, to complete the 1040 form, do I need to use also the information on the 1042-S form or just the W-2 form? I am not sure where to report 1042-S income and federal tax withheld on form 1040. 

Thanks,

Carolina

[LinaJ2020]

When did you first enter the US with the F-1 visa? 

If you have already stayed with the US for more than five years by the end of year 2019, you are considered as a US resident for tax purposes.  You do need to report your information on Form 1042S.  May I know the income code on the form? 

@dcm28623

[dcm28623]

Hi Lina,

This year I am a resident alien for tax purposes. I have received both W-2 and 1042-S (Income code 16, Exemption Code (4a) 15, Federal Taxes withheld 95 (7a and 10) because of a scholarship I received last year. Leonard was saying that since Turbo tax doesn't support form 1042-S, I need to fill the 1040 form by myself. However, I am not sure where to report 1042-S income and federal tax withheld on form 1040. I followed the instructions from the IRS website (https://www.irs.gov/taxtopics/tc421), but it's not clear how to do the math to determine the refund/ amount you owe part in the 1040 form when entering the information from 1042-S.

Thanks for your help,

Carolina

[LinaJ2020]

To enter code 16 scholarship income, you would treat it as receiving a Form 1098-T.  You will treat it as receiving a scholarship or fellowship to offset your qualified education expenses if there are any.  

Here are the steps:

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in "1098t" and Enter
• Select Jump to 1098t
• On the screen, Now Let's gather XYZ's Additional Education Expenses
• Follow prompts
• Next screen, Your Education Expenses Summary, select Edit
• Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information

As far as your tax withholding, here are the steps:

• At the right upper corner, in the search box, type in estimates paid and Enter
• Select Jump to estimates paid
• On the screen, Estimates and Other Income Taxes Paid, scroll down to select the section and enter information

@dcm28623

[dcm28623]

Thanks Lina. I actually received a 1098-T form that I used when following your instructions. So, by doing the steps you suggested, do I still need to file 1040 from or not? 

Carolina 

[dcm28623]

Hi Dave,

I am a resident alien for tax purposes. But your answer is confusing because it contradicts what the previous TurboTax agent suggested to me, which was to use both 1098-T and W2 forms to complete my federal taxes using Turbo Tax deluxe. If by doing this at the end, will mean that I still need to complete the 1040 form to report all W2, 1098-T, and 1042-S forms, there is no point of using Turbo Tax services, right? I guess it will be useful only for state taxes. 

Thanks,

Carolina

[dhyou21]

Hi, Lena. I do have Form 1042-S with income code 16, but I'm not a student but a postdoc fellow at NIH, receiving "wage" for my work. I don't have any education expense to off-set. I'm also considered resident alien for tax purposes and am not claiming any tax treaty benefits. 

I was suggested by another person to report my 1042-S under "other reportable income."

What is more appropriate approach here, treat it as 1098 or report it as other reportable income?

[dhyou21]

I want to use Turbo Tax deluxe option to report everything, Federal and State. I would appreciate the option available on Turbo Tax

[dbrown31]

Hi, just to be clearer on the answer. You are filing a tax return 1040 IF indeed you are a Resident (F1 visas are "exempt" individuals under publication 519, thus should be filing a 1040 NR. You cannot count days for substantial presence test if you are an F1 visa holder).  

If you are using Form 1040 - all W2, 1098T all other income and world income is entered here in form 1040 to determine your tax liability. You can report 1042-s as other income since that's what it is basically, inside form 1040.  

The bigger question is, should you be filing as Non resident being an F1 visa holder...

[madzayasodara]

Hi I'm having a similar issue. I'm a J1-student and this year have received a W-2, plus 2 other 1042-S code 16, and a 1098-T, and I am a resident alien for taxes purposes. How do I input this in TurboTax?