Should I report form 1042-S (income code 29) as an interest income like 1099-INT?

[chouhj]

I am a resident alien on F1 visa. However, I still received 1042s with income code 29, exemption code 02, and tax rate 0%. Is the interest income taxable? Should I report it as an interest income like 1099-INT?

[DS30 · Accepted solution]

Yes you can enter it as if you received a 1099-INT if you are considered a resident alien (and yes the interest would be taxable.)

Please note - If you are on a F-1 visa, you will be exempt from the Substantial Presence Test for the first 2 (if non-student) or 5 (if student) calendar years that you are in the US. This means that you are considered a non-resident aliens for US tax purposes.

See this link for more information from the IRS on US Tax Guide for Aliens

[chouhj]

Thank you for the answer! I was on a F1 visa since 2011, so I was considered a resident alien starting in 2016.

[DS30]

So enter under 1099-INT box 1 🙂

[wangha11]

Do you need attached the 1042s with tax return?

[chouhj]

To wengha11, I reported the tax return electronically via TurboTax so I did not need to attach anything.

[newresidentalien]

Hi I have the same issue this year. Did you file the 1042-S as a 1099-INT? Did you have any issues with your returns? I am planning to do the same so wanted to check with you.

[DaveF1006]

No.  you would not report this income if there is a Exemption Code 2 in either Box 3A or 4A. If there are no exemption codes, you report this income like a 1099 INT.