Where I can add my 1042s?

[ColeenD3]

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.

Please see this LINK for more information.

[egodig90]

Hi,

this is my first year as a resident for tax purposes, since I've been in the U.S. for at least 5 years on visa. For 2019 I still received some 1042S scholarship funding from my academic institutions, besides a W2. I used to file with SprinTax, but they wouldn't allow me to do so this year given my tax status change. Is there a way I can still file with TurboTax in a way that still allows me to declare my 1042S amount?

[KrisD15]

It is unclear if the scholarship is taxable or was used for tuition. 

Also, an employer can pay up to 5,250 of an employee's education expense, in which case that amount is not taxed. 

You can enter the 1042-S as "Other Income" but I don't know what it represents, so I'm not sure how much you should adjust. 

If you understand what you're doing, you can follow these directions to enter the 1042-S and then repeat the process and subtract the non-taxable amount. 

For example, if the amount is 6,000 and it was sent to your school, you could enter a second entry with a negative (-5,250) to remove 5,250 as employer education assistance. 

If the amount is a stipend to help with your living expenses, leave it entered as other income and therefor it will be taxed. 

Click Federal

Click Wages and Income

Scroll to the bottom and click Show more under “Less Common Income”

(you may need to answer Yes/No questions and/or click “All income” first)

Scroll to the bottom “Miscellaneous Income, 1099-A, 1099-C" and click Start

Scroll to the last choice “Other reportable income” and click Start

Enter    “1042-S"   as the description and the amount and Continue

Click Done on the next page

This puts the income on Schedule 1 line 8 and flows to your 1040 line 7a

Depending what  this income was for, an adjustment to subtract the non-taxable portion may be in order. 

If there was withholding done, enter that amount under Deductions & Credits. 

[egodig90]

Hello,

thank you for your answer. To clarify: my income code on the 1042S is 16, with gross income being slightly over 6,000 USD and tax rate applied being the usual 14%, as then reflected in boxes 7a and 10 of my 1042S.

Which way should I take as a result?

[KrisD15]

How did you handle it in years past? Was it all taxable when you filed 1040-NR? It was be that same for the 1040.

Code 16 means "Scholarship or Fellowship"

You should ask the school or the employer's payroll department what it is. 

I would GUESS that it is a fully taxable Fellowship since you also received a W-2. 

I suggest you enter the amount as other income as described. 

Next, enter the tax withheld:

Click Federal 

Click Deductions & Credits

Scroll down to "Estimates and Other Taxes Paid" and click Show more 

Scroll down to "Income Taxes Paid" and click Start

Answer "Yes"

Scroll down to "Withholding not already entered on a W-2 or 1099" under "Other Income Taxes Paid in 2019"

At this point, you would be fine declaring the income and reporting the tax. You do not need to do anything more UNLESS you think it  may be tax-free. 

Inquire with the school to find out if this was used to pay for tuition or if you received these funds as a Fellowship, OR if the 1042-S reports the amount of your scholarship that was MORE than the tuition. 

If it paid tuition, that amount would not be taxed. 

Information about 1042-S

[egodig90]

Hi,

thank you for all the information - I am seeing this just now and went back to edit my federal return just as you suggested. In previous years and this year, my 1042-S sums were completely taxed at 14%, as they are de facto stipends to graduate students. Tuition is not included there.

I let TurboTax automatically transfer this information into my state return, so I should be all set.

[Rowena2]

On one of my 1042S, 3a exemption code is 02, it means "exempt under IRC". Do I have to report on my tax return?

I also have another 1042s, 3a exemption code as 00,  but its 4a says 15, which means "not subject to Chapter 4 withholding". The chapter is 3. I want to confirm I need to add these to my tax return?

Thanks.

[Cynthiad66]

Yes.  You add them to the return and TurboTax will use that information to determine the taxability of each.

Use Form 1042-S to report:

• Income and amounts withheld as described in the Instructions for Form 1042-S.

• Specified Federal procurement payments paid to foreign persons that are subject to withholding under section 5000C.
• Distributions of effectively connected income by a publicly traded partnership or nominee.

Use this link for more information.  About Form 1042-S

[Rowena2]

Thank you.

If the exemption code is 02, I don't have to enter it to the TurboTax, right? 

In Turbotax, there is no way to enter the code. I can only enter the earnings in Other Earnings and the tax withheld in Other Tax Paid. So if I enter the earnings with the exemption code as 02, the earning is still counted towards my earnings.

Please advice. Thanks.

[JohnB5677]

The 1042-S is for Foreign Person's with U.S. Source Income Subject to Withholding

If you haven't been in the US more than 5 years, you need to file a non resident return.  

Although TurboTax doesn't support IRS Form 1040-NR (U.S. Nonresident Alien Income Tax Return), we have partnered with Sprintax to offer both federal and state tax preparation for international students, scholars, and nonresident foreign professionals.

Please visit the TurboTax/Sprintax site for more info.

If you have been in the US for five years or more, You will need to enter the income in the self-employment section of TurboTax. 

In TurboTax Self-Employed you will post this under:

• Income & Expenses
• Self-Employment Income & Expenses
• If you've already started entering the business you will select REVIEW
• Select Add income for this work
• Under Common Income
• Select Form 1099-NEC

You may need to upgrade to include this income.

[hayleyzhou]

Thank you for your response John! I am considered a Resident Alien, I am using the IRS version of Turbotax, I uploaded amount through the Miscellaneous Income, I will change it, but is there any other forms I need to upload such as the 1040 form? (I am heard that the turbotax will automatically fill out the 1040 for me, but I have not yet able to see it)

[hayleyzhou]

I am also a little concerned withe the 1099-NEC form, as the format of two forms are different... On my 1942-S form box 1 is the income code (20 on my form) and box 4-7 is also different from what the questions are asking for. This is actually from an on-campus job, so should I still fill out the information as what the questions describes? 

[LinaJ2020]

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

In TurboTax online,

• 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.

If you have a federal tax withholding in box 7, here are the steps:

• At the right upper corner, in the search box, type in estimated tax payments and Enter
• Select Jump to estimated tax payments 
• Next screen, Estimates and Other Income Taxes Paid, 
• Scroll down to Other Income Taxes Paid in 2020 / Withholding not already entered on a W-2 or 1099, select Start to enter information

@ hayleyzhou

[hayleyzhou]

Thank you Lina, I was able to fill out the 1042-S through your instruction, but I did not find a link toward the 8833 form, should I get the form from the IRS website? And including it withe the paper 1042-S form? maybe along with the 1040? (for paper filing, do I need to clear my record on Turbotax and just mail all my forms?) Thank you