reporting 1042S income with turbotax business plan

[freshaska]

Hi,

I am a student from China currently doing my PhD in the US. I received my green card last year so I'm reporting my tax as resident alien. I received 1042S form and am currently using the turbotax business desktop version to report my tax(since I also was self employed for some duration of last year). How do I report my 1042S? Is it in other income not already reported on a Form W2 or Form 1099 or other reportable income section? Thank you!

[DaveF1006]

To clarify? Was your 1042 S income derived from Self-Employment?

@freshaska

[ Edited 03/15/22|07:30 PM PST]

[freshaska]

Sorry to clarify, I am using home and business PC version. How should I report 1042S in this situation?

To recap my question: I am a student from China currently doing my PhD in the US. I received my green card last year so I'm reporting my tax as resident alien. I received 1042S form and am currently using the turbotax business desktop version to report my tax(since I also was self employed for some duration of last year) How do I report my 1042S? Is it in other income not already reported on a Form W2 or Form 1099 or other reportable income section? Thank you!

[DaveF1006]

To clarify, is the 1042 S income derived from your Self-Employment or from another source? Also is tax withholding reported on the form?

[freshaska]

The 1042S income is from another source. It is from my income as an employee from my school. I received a W2 form and a 1042S form from my school. There's no tax withholding reported on my 1042S form. This is because of the US china tax treaty for F1 student, there's an exemption for the first 5000 dollars earned each year. I was a F1 student for the first part of 2021 and my status changed to permenant resident in Oct, 2021. Here's some more information on my 1042S form: box 1 income code: 20. box 3 Chapter indicator: 3. Box 3a Exemption code: 04; box 3b: tax rate: 00.00. Box 4a: Exemption code: 15; box 4b: tax rate: 00.00

Thank you!

[DaveF1006]

You do not need to report the 1042S on your tax return. According to the IRS, every withholding agent must file an information return, Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to report amounts paid to foreign persons that are described under Amounts Subject to NRA Withholding and Reporting, even if withholding is not required on the payments. Refer to Amounts Not Subject to NRA Withholding and Withholding for payments that do not require withholding.

A separate Form 1042-S is required for:

• Each recipient regardless of whether or not you withheld tax.
• Each type of income that you paid to the same recipient.
• Each tax rate (if you withheld at more than one tax rate) of a specific type of income that you paid to the same recipient.

To recap, you do not need to report the 1042S since was already reported to the IRS as it is only an informational return that your employer has already submitted.  

@freshaska