What do I do with the 1042-S?

[DanielG · Accepted solution]

Form 1042-S is used to report amounts paid to foreign persons that are subject to income tax withholding, even if no amount is deducted and withheld from the payment because of a treaty or exception to taxation, or if any amount withheld was repaid to the payee. It is also used to report amounts withheld under Chapter 3 of the Internal Revenue Code.

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. 

The significant items  on the 1042-S form are Box 7 and Box 10. Box 7 is US Federal Tax Withheldand 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. 

• Income Code 06 on Form 1042-S is used to report Dividends paid by U.S. corporations – general.

• Complete instructions for filing your income reported to you on Form 1042-S for tax year 2015, as well as descriptions of all other income codes reported on this form, can be found at the following IRS site: https://www.irs.gov/pub/irs-pdf/i1042s.pdf

• TurboTax does not directly support the filing of Form 1042-S, but since yours is reporting U.S. corporate-paid dividends, you can report these amounts in TurboTax under Investment Income. You will enter your information in TurboTax under dividend income reported on Form 1099-DIV.

[Scott777]

Hello,

I am a resident alien and have both a W-2 and a 1042-s form. Because of that, I am struggling with filing taxes.

The income code of 1042-s form is 20 and the box 7 and 10 are 0. Here is my question.

I found out that if the box 7 and 10 are 0, then I do not need to file this form (1042-s). Is it correct?

The gross income on 1042-s is not 0.

Or am I supposed to file this form as well?

Thank you.

[ag9dz]

Hi @Scott777 ! Did you ever figure out how to file it - I'm in the same situation and can't find anywhere to submit both the W2 and 1042-S (within turbotax but also any other tax online platform) 

[LinaJ2020]

You are still required to report this income on your return. 

Per IRS, income code 20 refers to Compensation during studying and training, you will enter as follows :

• Sign back into your account, select Pick up where you left off
• To your left, select Federal, from the top, select Wages & Income, scroll down to Less Common Income ( very  last section on the screen) 
• Click on Show more drop-down menu, scroll down to Miscellaneous Income, 1099-A, 1099-C- Start 
• Select Miscellaneous Income- Other income not already reported on a Form W-2 or Form 1099 select Start
• Follow prompts

If you are eligible for a tax treaty, you would need to file form 8833 and claim any treaty exemptions as negative amount under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ".  You should paper-file your return including a copy of your 1042.

@ ag9dz  @ Scott777