Home > Basics > What is Form 1042-S and Who Needs to Submit One?

What is Form 1042-S and Who Needs to Submit One?

Foreign workers and students who are considered non-resident aliens and are working in the United States are subject to tax withholding. IRS Form 1042-S is an annual information return for any monetary amounts given to a non-resident alien by a United States based institution or business.

The IRS says that any withholding agent (such as an employer, business, or university) that paid any amount subject to withholding (as described on Form 1042-S on page 4) to a non-resident alien would need to submit a 1042-S information return for every payment recipient.

Some of the payments which are required to be reported on Form 1042-S include but are not limited to: corporate distributions, interest, rents, royalties, compensation for dependent and independent services, pensions and other deferred income, and most gambling winnings.

Some payments are not subject to withholding such as scholarships used for tuition, expense, books, and fees for universities. Also, any service payment that was performed in the person’s country of origin is not subject to withholding. However, these payments are still required to be reported on a 1042-S form. There are more circumstances that are detailed on page 4 of Form 1042-S.

For non-resident alien employees, the form’s purpose is somewhat similar to the W-2 form that employees who are American citizens receive from their employers. The withholding agent files the 1042-S form with the IRS and sends a copy to the payee for information purposes. However, employment earnings are not the only transaction that the form covers.

Non-resident aliens have different laws that regulate tax withholdings than resident aliens. It is important that employers, businesses, universities, and anyone who pays foreign nationals any type of payment to know the resident status of their payees. For tax purposes, resident aliens are treated the same as U.S. citizens.

A non-resident alien can briefly be described as any person who is not a citizen or resident of the United States. If an alien meets the “green card test” or the “substantial presence test” for the calendar year, they are considered a resident alien. If any alien does not meet either one of those tests, they are considered an alien.

It should be noted that any amounts paid to residents of a U.S. possession or territory are not required to be reported on Form 1042-S as long as the payee is a U.S. citizen, resident alien, or U.S. national.

Some of people who would receive a 1042-S form from a withholding agent include students and postdoctoral fellows at American universities who are considered non-resident aliens, and employees at any business who are non-resident aliens under a tax treaty.

A tax treaty between the United States and the foreign national working in the United States may override U.S. income tax laws. Since each scenario is different due to tax treaties, a foreign national should consult an accountant or their employer on whether or not taxes should be withheld from the transaction amount.

Regardless of whether or not taxes are withheld from the transaction amount, any withholding agent that pays an amount of money to a non-resident alien in the U.S. is still required to file a 1042-S form.

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  1. ola
    April 25th, 2014 at 02:49 | #1

    Hi Erich
    I have a problem similar to that of Hely. I am a non resident alien and have been outside the US for some years. My bank has sent me a 1042 S that I received yesterday and my income stated on it is $1. Do I need to file a return ( I have not filed a return after I moved out of the US ).

    Is there a penalty since even if I have to file a return it will not reach before April 30?
    thanks
    Ola

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  2. ola
    April 25th, 2014 at 02:54 | #2

    Hi MN were you able to find out what to do with your 1040S?

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  3. rk
    May 14th, 2014 at 21:08 | #3

    I believe since it is under $10, which is the filing requirement, you are not required to file. @ola

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  4. Mary
    May 15th, 2014 at 13:19 | #4

    Hi Erich, I worked in the US for many years and earned a pension. I began receiving my pension in 2013. I completed Form W8BEN and am not withholding any US taxes. The company issued a Form 1099-R for these pension payments showing that no US taxes were withheld. I am a nonresident alien living in the UK. Shouldn’t I be receiving Form 1042-R and not Form 1099-R? How are these forms different? How is this US income reported on my UK taxes, if at all? Please advise.

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  5. May 15th, 2014 at 14:05 | #5

    1099-R is an information return sent to US residents. The 1099-R is used to report
    distributions from pensions.

    If you are from the United Kingdom, you should instead receive IRS Form 1042-S. 1042-S is
    used to report income from a US payer to a non-US resident. So if I (a US resident and payer)
    paid you (a non-US resident) money, then Id have to report that using form 1042-S. We work with
    lots of book publishers in the US. Book publishers hire writers throughout the world and have
    to report payments to them using Form 1042-S.

    I have no idea how the US income is reported on your UK taxes. I only handle US tax code which
    is a handful as is. The 1042-S form will show withholding and if withholding is greater than 0,
    then you may be eligible to receive that money. If nothing was withheld, then its just an
    informational form.

    You would want to contact the payer and talk with them. Im assuming you do not have
    a social security number. Let them know you are a non-US resident and that the 1099 forms
    do not apply to you.

    I hope this helps. Email anytime.

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  6. May 15th, 2014 at 14:12 | #6

    The $10 threshold applies to interest on deposits only. Interest described in
    section 871(i)(2)(A) aggregating $10 or more paid with respect to a deposit maintained
    at an office within the United States if such interest is paid to a nonresident alien
    individual.

    Other than interest on deposits, there is no other threshold that I know of.

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  7. MN
    June 3rd, 2014 at 06:41 | #7

    @ola
    Hi ola,
    I completed the formality by filing my federal taxes by submitting the form 1040NR + Schedule OI which is a part of form 1040NR. In addition submitted form 8840

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  8. ravi
    June 17th, 2014 at 12:42 | #8

    I hold US shares/securities thru two firms. One is E-trade. Another is HSBC Bank Hong Kong. More than US$ 1000 is deducted annually on my dividend income from US securities. Etrade issues me
    Form 1042-s but HSBC HK does not. BBH is the custodian of the securities in USA and I believe they also are the once who deduct withholding tax at source. Who should issue the form 1042-s? I am Indian national resident of India meaning alien.

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  9. June 17th, 2014 at 19:43 | #9

    Excellent question. I appreciate the question. However, Im not sure Im qualified to answer it.

    Form 1042-S is for non-US residents while the 1099 forms are for US recipients. 1042-S is
    used to report income from a US payer to a non-US resident (and where there is income, withholding
    may apply). Since you are an Indian resident and not a US resident and you are receiving income
    from a US payer, then I believe that 1042-S would apply. But I would talk with the respective
    payers, in this case E-trade and HSBC HK.

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  10. Mani R
    July 15th, 2014 at 00:00 | #10

    Hi Erich,

    Thanks for such a detail answers and I am hoping you can help me here.

    I am a permanent resident of U.S for the past 6 years. But, for 2013 year, Fidelity sent me
    a 1042-S which they should not have done it. So i talked to them and they sent me an “amended” 1042 S form.

    The first 1042S had – code 14, gross income 2341, tax rate 30, Fed. tax withheld=$702.
    The amended 1042S had – code 14, gross income $0, tax rate 0, Fed. tax withheld=$702

    Question is:
    1) Do I need to report this 1042S (I got my W2 from my employer as well)?
    2) If so, how or where should i do it? I am using taxact software.

    3)Is it possible to get the withheld money $702 from IRS?

    Thanks in advance,
    Mani

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  11. Mani R
    July 15th, 2014 at 00:04 | #11

    @Mani R

    Just to let you know, I have extended my tax filing because Fidelity took sometime to generate the “amended” 1042S form. Looking forward to hear from you.

    Thanks,
    Mani

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  12. July 15th, 2014 at 23:22 | #12

    These are all detailed tax questions. I’m not an accountant and cant really answer these questions. As I read your list of questions, I get confused.

    You ask:

    1) Do I need to report this 1042S (I got my W2 from my employer as well)?

    You also say that you received an amended 1042-S with gross income of $0. If the tax rate is 0.0%, then withholding should have been $0 instead of $702.

    The tax amount withheld can be calculated by multiplying box 4 (net income) by box 5 (tax rate). If tax rate is 0.0%, then withholding should be 0.

    If withholding is $0, form 1042-S is just for informational purposes. It means the payer or withholding agent didn’t withhold any money and didn’t send any money to the IRS. So there is nothing you need to do.

    If withholding was $702, then you might have a chance at getting that money from the IRS. But if you are a US resident, you should not have even been issued Form 1042-S.

    I would contact the withholding agent (Fidelity) and ask them to clarify and/or double check the form. It sounds like they were trying to void the earlier form they sent you. You received Copy B in the mail and probably called or emailed someone at Fidelity and told them “I am a permanent resident of the US for the past 6 years”. They then generated a corrected Form 1042-S and its sounds like its still incorrect.

    We work with many, many companies that paper and electronically file Form 1042-S. 1042-S is really a very difficult form. Its easy to make a mistake on that form.

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  13. Mani R
    July 17th, 2014 at 22:27 | #13

    Erich – thanks for the feedback. Yes, I was also confused when i saw the “amended” 1042S, with income and tax = 0%, but withheld = $702. Looks like i need to go and meet someone in person at Fidelity. Appreciate the input.

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  14. robin
    August 13th, 2014 at 10:55 | #14

    Is there any way to recoop the witholdings? I have a 1042s and would like to file and recoop the withheld taxes.

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  15. August 13th, 2014 at 22:49 | #15

    Yes. You may be eligible for that withheld amount. The first step is which country are
    you from? Some countries have a tax treaty with the US and residents from those countries
    are eligible for that withheld amount.

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  16. Larry Rivera
    September 19th, 2014 at 11:14 | #16

    In August 2012 Puerto Rico was included in the foreign NRA tax bracket. What IRS form should be used to accompany the 1042S?

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  17. Dianne
    November 21st, 2014 at 18:13 | #17

    Hi Erich,

    Thank you for your helpful article regarding 1042-S form! From your article and your responses, I know if I am a non-resident alien AND physically work in the U.S., I should get a 1042-S form from my employer. However, my situation is, a non-resident alien working for a California based company but living outside of U.S.. In this case, should my company still issue 1042-S form to me or other kinds of tax forms? Thank you very much for your help!

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  18. November 22nd, 2014 at 09:59 | #18

    If you are a non-resident alien receiving money from the US, then you receive 1042-S.

    The top of 1042-S says “Foreign Person’s US Source Income Subject to Withholding”. And the case you describe definitely applies. A non-US resident receiving income from a US source (a business or individual) receives 1042-S.

    We work with lots of US book publishers. A writer might reside in Japan or Africa or Europe or Canada or wherever. The writer gets paid typically from a book royalty. The US book publisher is sending US source income to the non-US resident. Since the writer doesnt have a SSN, the IRS wants the book publisher to withhold (roughly) 30% (Im not sure what the current rate is) and send that money to the IRS. The foreign writer may have an opportunity to use that withheld money. It depends on which country they are from and whether the US has a tax treaty with that country.

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  19. Berangere
    February 13th, 2015 at 16:31 | #19

    Hi Erich,
    I am a US Citizen living now in France. For tax purpose, I requested a 1099 Form from a Company where I have a Saving Plan (I am taking MRD since 2013). This company keeps sending me a 1042 S. It is my understanding that 1042 is only for foreigners. I have contacted this company many times for over one year but they keep telling me that because I am living in France, I need to get a 1042. How can I get my 1099 ? Tks for your response.
    CL.

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  20. February 13th, 2015 at 16:41 | #20

    All good questions. You are kinda correct when you say “It is my understanding that 1042 is only for foreigners”.
    That was true for along time. The IRS modified the form and the new part of the form is called Chapter 4.

    Try reading this article

    http://www.1099fire.com/blog/whats-new-with-irs-form-1042-s-for-tax-year-2014/

    Does Chapter 4 reporting apply to you? If it does, then you get the 1042-S. If it doesnt, then the
    1099 applies and you have to contact that US company and tell them you have a Social Security Number.

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  21. Dusa
    March 2nd, 2015 at 22:21 | #21

    Hi,

    I am confusing about my tax return so I hope that You could give me answer to my problem. I am J1 scholar payed with the money from my home county trought US university. US university is just administrative institution so according to the IRS my money is foregin source.
    However,university here send me 1042s with income code 15 and examption code 02. So from my income nothing is not withhold. This is my only income here in us. Does I need to fill tax return just because I am J1? Do you think that IRS will ask me to pay a tax after filling tax return? Also, I think that my university did mistake because forgen source income is not requared to be reported. Or they should use examption code 03… But at my university they do not want correct error. Can I report problem to IRS? How?

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  22. March 2nd, 2015 at 22:59 | #22

    > US university is just administrative institution so according to the IRS my money is foregin source.

    We handle cases like this often. The US university is the payer. You are a non US resident. You have no
    Social Security number correct? My guess is you do not. In this case, the University is paying you (even
    though the money might be coming from your home country) and you are non-resident. In this case, 1042-S
    applies.

    > So from my income nothing is not withhold.

    Nothing is withheld means that the Copy B you received is just for informational purposes. If something
    was withheld, you might have been able to get at that money. But $0 withheld means the University sent
    nothing to the IRS. Be thankful nothing was withheld.

    > Does I need to fill tax return just because I am J1? Do you think that IRS will ask me to pay a tax after filling tax return?

    I have no idea. I dont deal with the 1040 form or 1040-NR (NR is non resident). You would want to talk
    to someone else about whether to submit those forms. The 1040-NR would apply to you if you dont have a SSN.

    > Also, I think that my university did mistake because forgen source income is not requared to be reported.

    The University is the withholding agent. Yes the money started in your home country. But the home country
    didnt pay you directly. Instead the home country paid the University. The University then pays you. In this
    case, the University is the payer and they are responsible for form 1042-S. This is the correct form.

    We work with lots of banks and I see money moving from one bank to another bank instantly. Think of the University
    as a bank (which in many ways they are). Your home country is a bank as well. Some bank in your home country
    sent money to the University bank. The University bank then cuts you a check. The University is a US payer and
    you are a non-US resident. The IRS wants a record of these transactions using form 1042-S.

    > Or they should use examption code 03

    I dont know which exemption code applies to you.

    > Can I report problem to IRS? How?

    You can report anything to anyone. However, I would talk to the payer first. The payer or University
    can issue a different form with a different exemption code in minutes. Talk to the University.

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  23. Dusa
    March 4th, 2015 at 15:08 | #23

    Thank You very much for Your answer.
    I spoke with non-university tax adviser and she told me that I do not need submit 1040NR because this is my only US income and I have exemption code on it. But I had to fill 8843 form because I am J1 scholar. Do you agree?

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  24. Jay C
    March 9th, 2015 at 15:04 | #24

    Thanks for your article. Very helpful.
    I am resident alien who works here in the US. I set up a brokerage account with fidelity where i mistakenly set my tax residency as Ghana instead of the US. And so after trading a stock i realized that fidelity withheld some of the funds for tax. I contacted them to find out why and i was told my account was set up as tax residency Ghana. And they got me to certify my tax residency by completing the W-9 form. However they said I can only get the withheld tax refund to me next year during tax season. Does it mean i will need to file the 1042-S form next year?

    Thanks

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  25. March 9th, 2015 at 20:19 | #25

    Im not sure. You would want to contact a local accountant. If they withheld money, you might
    have a chance at getting at that money. It depends on the country you are from.

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  26. Chris
    March 12th, 2015 at 13:42 | #26

    Hi

    I am a J1 scholar working for the federal government. I have been here for over 2 years and therefore I am now classed as a resident for tax purposes. I will receive a 1042S but I am unsure how I can file this. Is this classed classed as a 1099 for filling in the 1040 form?

    I am a UK citizen and do not fall under a tax treaty as I do not work for an academic institution.

    Thanks
    Chris

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  27. March 12th, 2015 at 14:00 | #27

    > Is this classed classed as a 1099 for filling in the 1040 form?

    No.

    > I am a UK citizen and do not fall under a tax treaty as I do not work for an academic institution.

    1042-S is US money paid to a non-US resident. When you say you are “now classes as a resident for
    tax purposes” Im not sure what they means. Do you have a social security number? If you do, then a 1099
    form applies. If you dont have a SSN, then 1042-S form applies.

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  28. vinoth
    March 14th, 2015 at 15:42 | #28

    We are not US citizens. I am on work visa(h1) and wife on dependent visa(h4). we both are resident alien for tax purposes(based on substantial presence test). My wife received a $100 welcome bonus(opening bonus) from Huntington bank and we were expecting a 1099 int but didnt receive any so I confirmed with them multiple times that she will not be receiving a 1099 int and I just completed my federal filing (electronically) last week. Today in the mail my wife received a 1042-s for $100 – Income code 29(deposit interest) , exemption code(3a) 02 (exempt under IRC), tax rate 0.00 and federal tax withheld 0.00. My question is first of all do I need to report this 1042-s income on our form 1040(we filed jointly). If yes since I already filed my taxes how to report this additional $100?. It doesent make sense to send the form on March 15 by which most of them would have filed. Really appreciate your answers and time.

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  29. March 14th, 2015 at 15:57 | #29

    If you were US citizens with a US social security number, you would have received a 1099.
    Since you dont have a SSN, the bank issued a 1042-S. 1042-S is a form to report US source
    income paid to a non-US resident.

    If you look at the form, Box 7 is US Tax Withheld and Box 10 is Total Withholding Credit.
    Did the bank withhold any money? If so, you might be able to access that money depending
    on which country you are from and whether the US has a tax treaty with that country. If
    nothing was withheld, then Copy B is really just informational and there is nothing to do.

    You ask

    > My question is first of all do I need to report this 1042-s income on our form
    > 1040(we filed jointly)

    I dont know. There is a box on Form 1040-NR regarding the 1042-S. That box on
    Form 1040-R is asking whether you have had money withheld and you want to apply that
    money toward a refund. The 1040 form is typically for US residents while 1040-NR
    where NR means non-resident is for non-US residents.

    In summary, I dont know how to answer this question.

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  30. vinoth
    March 14th, 2015 at 16:09 | #30

    Thanks for your reply eric. My wife doesn’t have a ssn she got an Itin so thats why the bank sent her a 1042-s. Yes the box 7 federal tax withheld is 0. So based on your reply this is for our informational purpose – sp nothing to do on our side just keep it for the records?

    Thanks.

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  31. Neeraj
    March 21st, 2015 at 08:42 | #31

    I got a 1042-S form from my employer. Is it only for informatory purposes or Do I have to do something on my part?

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  32. March 21st, 2015 at 11:21 | #32

    Maybe. For you, look at Box 10 on Form 1042-S which is Total Withholding Credit. If Box 10 is $0,
    then there is not much to do. There is no withholding so you can just throw away the form. If Box 10 > $0,
    then you maybe eligible to use that withholding credit on Form 1040-NR. It depends on which country you
    are from and whether the IRS has a tax treaty with that country.

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  33. Isuru
    March 23rd, 2015 at 19:05 | #33

    Hi Erich,

    My case is very similar to vinoths above. But I’m an international graduate student (J1 visa) who works as an hourly Research Assistant at my university. Normally I file a 1040-NR using the W2 form I get from my university. But last year I opened a savings account at my bank and I got a $50 coupon for that. So I got a 1042-S form from my bank with following details.

    box 1 – income code 29
    box 2 – $52 ($50 coupon + $2 interest)
    box 3a – Exemption code 02
    box 4a – Exemption code 15
    box 5, 6, 7, 8, 9, 10, 11 all $0.00

    I read you’ve mentioned above that if the amount withheld is $0.00, this form is only for my information. But my question is, should I add this $52.00 income somewhere in my 1040-NR form? If yes, what is the line number?

    Thank you so much for any help on this.

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  34. March 23rd, 2015 at 21:10 | #34

    I honestly dont know much about form 1040-NR. I do remember an IRS agent telling me one time that,
    in theory, ALL income has to be reported. How to report this income on Form 1040-NR is not something
    I can answer.

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  35. Sampson paul
    March 28th, 2015 at 06:23 | #35

    Hey please say you can help

    I am a herbal life distributor which means I get paid In us from the upline which is in Usa I live outside of the us and they mailed a form 1042 for me to fill out what do I do fill it out and return it?
    Do I need to pay anything?

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  36. March 28th, 2015 at 06:53 | #36

    Form 1042-S is a form US businesses send to non-US employees. Are you a US resident leaving outside of the
    US or a non-US resident? If you are a US resident, then they sent you the wrong form.

    If you are a non-US resident, what is in Box 7 and Box 10? Box 7 is US Tax Withheld and Box 10 is
    Total Withholding Credit. Those 2 boxes tell everything you need to know about this form.

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  37. M
    March 29th, 2015 at 02:05 | #37

    Hi,

    I’m a US citizen living abroad, and I recently received a 1042-S form from Amazon’s Associates Program. I’ve already filed my taxes for my foreign income and I did not include the income from Amazon, as they said if it’s under $600 you don’t need to report it. (It’s around $60.) The boxes 7 and 10 have no amount listed, which is fairly unsurprising since it is such a small amount.

    So on one hand, there doesn’t appear to be much to do, but one of the copies says to attach to any federal return you file. Since I’ve already filed, do I need to send this in as an amendment, or is this unnecessary if there is no amount listed in boxes 7 and 10?

    Thanks so much for your help!

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  38. March 29th, 2015 at 11:19 | #38

    Since you are a US resident, you shouldnt have received a 1042-S. Instead you should have received a 1099-MISC.

    Form 1042-S is US source income to a non-US resident. A US business is paying a non-US resident money and since
    the non-US resident doesnt have a SSN, the US business has to withhold 30% and sent that to the IRS. Box 7 on
    Form 1042-S is US Tax withheld and Box 10 is Total Withholding Credit. Box 10 is the most important box on that
    form. Its how much credit (or refund) the US resident resident can apply for on their 1040-NR form (the 1040 is for
    US residents and the NR on 1040 is non-resident).

    With all of that said, you are a US resident, so amazon goofed. You should have received a 1099-MISC. Since its
    less than $600, again amazon goofed since its a less than the $600 threshold. In defense of Amazon, the new 1042-S
    form and new rules and regulations are confusing.

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  39. M
    March 29th, 2015 at 15:06 | #39

    @Erich J. Ruth
    I will write to Amazon to clarify the situation to them, but in any case, am I supposed to be doing anything with these forms, or are they just for my records since there was no money withheld?

    Also, does it make a difference that I live permanently abroad? I am not a US resident at the moment, though still a US citizen. Amazon has my SSN, so they should know I’m an American, though I have a foreign address, so they may have been mixed up about it.

    Thanks for all your help! Seems like a lot of fuss for such a small amount of money! :)

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  40. Lo Nguyen
    April 2nd, 2015 at 14:55 | #40

    Hi Erich,

    I am a US citizen but my husband is not; he is from Scotland. He was here on a J1 visa and we chose for him to be treated as a resident for tax purposes so that we can file a joint return. He was here on a work study program through OSU and received W2’s from all of his employers. We just received a 1042-s in the mail this week. The form is very similar to another person on here:

    box 1 – income code 29
    box 2 – 54
    box 3a – Exemption code 02
    box 4a – Exemption code 15
    box 5, 6, 7, 8, 9, 10, 11 are all -0-
    box 12b – 01

    I can’t seem to decipher what this form is for and what it’s reporting. We completed a 1040 for our return. Do we need to add this information somewhere or send in a copy of the 1042-S along with our return? Thanks in advance for your help!

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  41. April 2nd, 2015 at 15:21 | #41

    > I can’t seem to decipher what this form is for and what it’s reporting.

    The 1042-S form is reporting money paid from a US business to a non-US person. Form 1042-S is a withholding statement.
    Since the non-US recipient doesnt have a SSN, the IRS wants the US business to withhold up to 30% of that money and send
    it to the IRS. That non-US resident would have an opportunity to use that money as a credit depending on which country they are from
    and if the US has a tax treaty established with that country. Not all US businesses withhold 30% and from the information
    you provide above, Box 7 (US Federal Tax Withheld) is 0 and Box 10 (Total Withholding Credit) is 0 as well. In this case,
    the 1042-S that you received is really just for informational purposes. Nothing was withheld. You were exempt and they list
    the exemption code.

    > Do we need to add this information somewhere or send in a copy of the 1042-S along with our return?

    Kinda. The 1042-S is sent when you fill out Form 1040-NR where the NR stands for non-resident. There is a
    field on 1040-NR that asks if you are applying the 1042-S withholding credit. If something was withheld
    and if you owe some tax to the IRS, you can use that withholding credit toward payment of taxes owed.

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  42. Lo Nguyen
    April 3rd, 2015 at 07:53 | #42

    @Erich J. Ruth
    Thanks for your prompt reply! We aren’t filling out a 1040-NR, however. We filed a 1040 as married, filing jointly and chose to have my husband be considered as a resident for tax purposes. I couldn’t figure out where to enter the 1042-s information onto the 1040. Does the code in box 2 indicate the amount of money withheld? If it’s for informational purposes and he’s not filling out the 1040-NR then we should be all set? Thanks for all the help!!

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  43. henri c
    April 3rd, 2015 at 13:09 | #43

    Hi Eric, I’m not a US Resident, but I have a savings account in a national bank.
    I just received a 1042-S form with a gross income of $11. I think is for interest earned. Do I need to file taxes for this?
    Thank you.

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  44. K K
    April 4th, 2015 at 23:03 | #44

    I have received income in 2014 as part of a court settlement from the company I work for. I have been given a filled in 1042-S form -the income code in box 1 of the form is ’01’, should i file it along with the 2014 tax return, if yes, how? I am a green card holder now but was on an L 1 visa when i received the income.

    Can you please help?

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  45. April 4th, 2015 at 23:30 | #45

    > should i file it along with the 2014 tax return, if yes, how

    A 1042-S is a withholding statement. The payer or US business that you worked for might have (and might not have)
    withheld money from you and sent that money to the IRS. You can check by looking at Box 7 (US Federal Tax Withheld)
    and Box 10 (Total Withholding Credit). How much was withheld? US payers are supposed to withhold 30% but lots of
    times they dont. If they withheld nothing and Box 7 and Box 10 are 0, then there is nothing to file. There is a
    box on Form 1040-NR (where NR stands for non-resident) where you can apply that withholding credit so that you pay
    less tax to the IRS.

    You say “should i file it along with the 2014 tax return” and I’m kinda getting the feeling that your talking about
    Form 1040. Do you have a social security number? Are you a US citizen? If so, then you shouldnt get form 1042-S
    and instead should get 1099-MISC and you report that income.

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  46. K K
    April 6th, 2015 at 12:53 | #46

    I was on L1 visa when I received the income, but now on Green card. I do have SSN.
    Since, I got only 1042-S and not 1099-MISC form, what can be done for 2014 tax return?Can I take information from 1042-S and submit 1099-MISC with my tax return? If yes, can you please provide more details.

    Thanks again for your quick responses.

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  47. Jane
    April 10th, 2015 at 09:35 | #47

    Hi
    I lived in the USA from 1992-2003 on a green card. I left the US in 2003, handed in my green card and returned to the UK – I am a UK citizen. Last year I withdrew my 401K and received a cheque. I have recently also received a 1042-S. I have not received income from the uS since 2003.
    Exemption codes are 04 and 15 which indicates I am exempt under tax treaty. Do I need to do anything or file anything?
    Thanks

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  48. April 10th, 2015 at 12:54 | #48

    Great question. Look at Box 7 and Box 10 on the 1042-S. If Box 7 and Box 10 are 0, then
    nothing was withheld. If nothing was withheld, then the 1042-S form is really just for
    informational purposes. You gain nothing by hanging onto the form.

    If Box 7 and Box 10 is greater than 0, then you might have an opportunity to access that
    withheld money. On Form 1040-NR, you can apply that withholding credit as a reduction in
    any tax payment to the IRS.

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  49. Alejandra
    April 12th, 2015 at 11:38 | #49

    Hi I have a big question my mother live in mexico and she has a saving account.
    For the first time in year just got a 1042-s form but we have no idea what to do with it the gross income is $6.00, it says that she has to return the form to and address but does she has to pay anything or we just have to send back the form to the address that is there??

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  50. April 12th, 2015 at 11:46 | #50

    $6 for gross income is not much. How much is withholding Box 7 and how much is Box 10, Total
    Withholding Credit?

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