Received a 1042s for Dividends

@mhoe22  You can just enter it into TurboTax in the 1099-DIV section.

I agree that entering the information on a 1099 form would probably work. The first part of your question says you are a nonresident, but later you say you are resident for tax purposes. I will assume your first statement really meant you are not a US citizen (which the tax code calls an alien).  A Form 1042-S should be issued only to a "foreign person." A resident is not a foreign person. You probably should have submitted a Form W-9 to the payer of the dividend, so they could issue you a Form 1099-DIV rather than Form 1042-S. The Form W-9 would include your Social Security Number, if you have one, or your Individual Taxpayer Identification Number (ITIN).

Hi, Thank you for the help! I did mix that up, I am a non citizen you are correct. The rule of the IRS says that if you lived in the USA for more than 5 years (and spent more than half the year there), you are taxed like a citizen. 

I am in the process of figuring out how to receive a W9 so I will not run into these issues again next year, hopefully it will work out! 

 

Thank you for the help! What would the steps to insert it be? On the 1042s I only have the fields of withholding and Income. Under the 1099 section there is 1a (ordinary) 1b (qualified) and 2a (total capital game distr.). 

In my case I did not sell any stocks for capital gain, I simply received dividends (less than $50).

TurboTax does not include Form 1042-S however Form 1042-S does not need to filed with your income tax return. Fill out Form 1042-S and then mail it to the address specified in the form instructions.

 

You will enter the income code for dividends in Box 1 and the amount of the dividends in Box 2 on Form 1042-S.

 

This link Form 1042-S has instructions for completing Form 1042 -S that you may find useful.

 

 

Note that a Form W-9 is a form YOU submit to the dividend payer. You do not receive it. If you have a foreign address, the dividend payer is required to send Form 1042-S unless you provide the payer with a Form W-9.  Form W-9 is available on the IRS website, at Form W-9 (Rev. October 2018) (irs.gov)

Based on what you have told me, this form does not need to be reported. According to this Turbo Tax post written by Daniel G:

1. Sometimes, this form is mailed out strictly for informational purposes and therefore does not need to be included on your return. This is often the case when Resident Aliens receive this form. 
2. The significant items  on the 1042-S form are Box 7 and Box 10. Box 7 is US Federal Tax Withheld and Box 10 is Withholding Credit. If both of those boxes are 0, then nothing was withheld and there is no withholding credit and the 1042-S form is just for your informational purposes. 

Please refer to the IRS link for further information.  https://www.irs.gov/pub/irs-pdf/i1042s.pdf

 

@mhoe22

Hi! I am having the exact issue as you as I mixed up the way I set up my brokerage account. I received a 1042-S account instead of 1099-DIV and they said they cannot retroactively generate a 1099-DIV form for me for this year. Do you mind sharing how you ended up filing in 2022, and what happened?

 

Thanks, really appreciate it if you could help me out! 🙂

 

Use your 1042S information to report your foreign dividend.  It is not necessary for you to receive a 1099 DIV to report a dividend payment.

 

When you enter the information, go to:

 

1. Federal>wages and income 
2. Investments and Savings>Dividends on 1099-DIV
3. When it asks how you will enter the information, say you will enter a different way
4. Next when all the icons appear, select dividends 1099 DIV. Don't worry if you have the 1042S instead of a 1099 DIV.
5. When it asks how you like to upload your 1099 DIV, indicate you will type this in yourself
6. In the section where it says Let's get the info from your 1099-DIV, type in the information on your 1042S.

As i mentioned, it is perfectly acceptable to report your 1042S is if you have a 1099 DIV. What is important is to report your dividend income.

 

@samanthachandra