1042-S Form

What is 1042-S Form?

The 1042-S Form is a tax form used by foreign individuals and entities to report income received from U.S. sources. It is also used by withholding agents to report the amount of tax withheld on behalf of the foreign individuals or entities. The form is submitted to the Internal Revenue Service (IRS) to ensure compliance with U.S. tax laws.

What are the types of 1042-S Form?

There are several types of 1042-S Form, depending on the nature of the income being reported. The most common types include:

Income Code Scholarships and fellowships
Income Code Compensation for independent personal services
Income Code Compensation for dependent personal services
Income Code Compensation for teaching

How to complete 1042-S Form

Completing the 1042-S Form requires attention to detail and accuracy. Here are the steps to complete the form:

01
Provide the recipient's personal information, including name, address, and taxpayer identification number.
02
Enter the income details in the appropriate boxes, indicating the type of income, tax withheld, and any exemptions or treaty benefits.
03
Submit the completed form to the IRS by the required deadline.
04
Keep a copy of the form for your records.

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Video Tutorial How to Fill Out 1042-S Form

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Questions & answers

The Form 1042-S can be filed electronically, or on paper. Withholding agents are required to file electronically if there are 250 or more Forms 1042-S. Withholding agents that are financial institutions must always file electronically.
The 1042-S is filed with the IRS and a completed copy is also sent to the employee or business. A separate Form 1042-S is required for: Each recipient (whether or not you withheld tax)
If Form 1042-S lists federal tax withheld in box 7 or state tax withheld in box 21, you can enter this data on a Form 1099-MISC in the program. You must paper file your return in this instance, including Form 1042-S with your tax return. From within your TaxAct return (Online or Desktop) click Federal.
Every withholding agent must file an information return, Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, to report amounts paid to foreign persons that are described under Amounts Subject to NRA Withholding and Reporting, even if withholding is not required on the payments.
The IRS form W-2 is used to report annual taxable federal and state wages. Treaties for nonresident aliens (NRA) may exempt the employee from federal taxes. If you are a NRA and are exempt from federal taxes, then you will receive a form 1042-S.
If Form 1042-S lists federal tax withheld in box 7 or state tax withheld in box 21, you can enter this data on a Form 1099-MISC in the program. You must paper file your return in this instance, including Form 1042-S with your tax return. From within your TaxAct return (Online or Desktop) click Federal.