Two 1042-S forms and Bangladesh-US tax treaty

The 1042S is not supported so you have to enter the parts separately. The good news, you can add them together for one entry.

For the income:

1. Go to federal
2. to Income and Credits
3. to last section, Less Common Income
4. bottom selection, Miscellaneous Income
5. Start
6. bottom selection, Other Reportable Income
7. Start
8. Any Other Taxable Income?
9. Yes
10. 1042S income and enter the total of the 2 forms.
11. Continue
12. Click the blue Add Another Income Item on the left
13. Enter  Bangladesh Treaty and the amount as a negative dollar
14. Continue

If you have other information on the 1042S, it will need to be captured in the sections that match it in similar fashion. 

Thank you! I really appreciate the help. I will try these steps.

I am looking at the section and I don't see any 'Miscellaneous Income' under the less Common Items. Is it because I am using the free online version?

Okay, I figured correctly. I won't be able to file 'with my tax treaty' unless I upgrade. ☹️

Follow prompts to upgrade or follow instructions here: 

https://ttlc.intuit.com/community/upgrading/help/how-do-i-upgrade-or-switch-to-a-higher-version-of-turbotax-online/00/26239

@TA30

Hi, 

You can actually enter your miscellaneous income using the IRS free file Turbo Tax edition if you qualify for low income or some categories. Visit IRS site and search for free filing software. The IRS site will give you a list of free filing softwares and Turbotax is one of them. Click the link given and it will take you to the IRS free file program for TurboTax. If you have low income and want to file for free this is probably the best method.

P.S. The free edition of TurboTax that you can access from their website is not the same as the IRS free file edition. The former is like a trial version with limited capabilities. 

Could you please answer these questions?

<https://ttlc.intuit.com/community/taxes/discussion/urgent-resident-alien-with-tax-treaty/00/1665576>

This is incorrect.

TurboTax does not support 1042-S. You must paper file your tax if you have claimed tax treaty benefits.

Additionally, it is also crucial that you submit form 8833 along with it. Not submitting form 8833 when you are required to can be penalized with $1000 fine for each failure.

What do you mean by it is incorrect? Students do not need to submit 8833 form. And if you already claimed and got tax-treaty in the previous year, the process is different.

Check this: https://www.irs.gov/individuals/international-taxpayers/claiming-tax-treaty-benefits

This is how to claim it, so if you already claimed and got the tax treaty you don't have to do that. And you should read it again. If you are working as a student with F-1 visa, you don't need to file the 8833 form.

You do not have to file Form 8833 for any of the following situations:

1. You claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate.
2. You claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.

See the second question on page 3

https://international.utk.edu/files/2017/02/FAQs_TY2016.pdf&sa=U&ved=2ahUKEwjU1fDZz9LqAhWNZ80KHSsABEgQFjANegQIChAB&usg=AOvVaw1bKR56aU-PfKnOjJMt54v1

Also, when you use schedule 1 to add and deduct tax treaty amount, your gross income lowers by the tax treaty amount. I've noticed that it enables people to claim EITC, which is erroneous. 

Yes it said 'normally' which means it is not mandatory. And I am also talking about the situation when you have already claimed and received the tax-treaty in the previous year. And isn’t a document provided from a school?? You should follow the steps that the experts from this software company offered. All softwares and system are different. I think you can follow the steps here and send 1040 form by mail.

Hello, 

I have a W2 (from graduate school)and a 1042-S (as a postdoctoral fellow) this year. If I follow the steps outlined by Amy for filing my 1042-S via turbo tax. Do I still need to mail a paper copy to IRS with my 1040 and 1042S?

You will need to mail it for the 1040. The 1042-S is a reporting form you use to file taxes in Bangladesh.

Hi Amy,

I was a Teacher Assistant during 2020 and got a 1042s from my school (code 16 no treaty). As of Dec of 2020 I had spent more than 5 years in the US as a student.

Do I still have to report for the 1042s I received? If so,  should I input the Gross Income from box 2 or the Total Withholding Credit from box 10 in the Miscellaneous Income? 

Thanks!

Income treaty is out of scope for our service.  You will need to consult a professional for clarification whether it is taxable or not.  If this is taxable to you, you will treat Form 1042- S as receiving a scholarship or fellowship to offset your qualified education expenses if there are any.  If you are not a student, you will enter the amount under Other Income.  As IRS receives a copy of your Form 1042-S, you can still e-file your tax return.  You do not need to submit your Form 1042-S separately.  

In TurboTax Online,

• In TurboTax online,

• Sign into your account, select Pick up where you left off
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income
• Next screen, Other Wages Received, select No to continue
• Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue

If you have paid in any tax withholdings, enter info so you will not be taxed twice.  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, select the right section to enter information  

The income will show on line 8 of Schedule 1 and Form 1040.