Countries With U.S. Income Tax Treaties for Form 1042-S Withholding Credits
The United States has income tax treaties with many countries that may allow nonresident aliens to claim a reduced withholding […]
IRS Form 1042-S
IRS Form 1042-S is used by withholding agents to report U.S.-source income paid to non-U.S. residents and foreign entities. This form covers a wide range of income types, including scholarships, fellowships, royalties, dividends, gambling winnings, and other taxable payments.
Withholding agents must provide Form 1042-S to the IRS and to the income recipient. The form shows the amount of income paid, the type of income, and the federal tax withheld. Foreign recipients use this form to file a U.S. tax return and to claim treaty benefits or refunds of overpaid withholding.
Businesses, universities, casinos, and financial institutions frequently issue Form 1042-S. Accurate filing is critical to avoid IRS penalties and ensure compliance with federal tax law.
👉 Learn more about Form 1042-S filing requirements and how our 1042-S software simplifies electronic filing for both small businesses and large institutions.
Why You Should Review Form 1042 Before Filing Form 1042-S
When it comes to withholding and reporting payments to foreign persons, many filers focus on Form 1042-S—the statement issued to
1042-S Chapter 3 and 4 Status Codes
On Form 1042-S, the Chapter 3 Status Code (Box 12) and Chapter 4 Status Code (Box 13i) are used to
Form 1042-S vs. 1099: Correctly Classifying Payments to Foreign Contractors
When working with independent contractors, one of the most important tax compliance steps is ensuring that payments are reported on
How to Reconcile Form 1042 With Your 1042-S Filings
Reconciling Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) with your Form 1042-S filings is
Implications of IRS-ICE Data Sharing
The IRS-ICE data-sharing agreement, signed on April 7, 2025, marks a major change in U.S. tax and immigration policy. It
Casino Compliance: Managing W-2G and 1042-S Reporting for Gambling Winnings
Casinos in the U.S. have specific IRS reporting obligations when it comes to gambling winnings. The two primary forms involved
Cross-Border Payments Compliance: When to Issue Form 1042-S vs. Form 1099
Navigating U.S. tax reporting rules for cross-border payments can be tricky — especially when deciding whether to issue a Form
How Foreign Athletes and Entertainers Are Taxed Using IRS Form 1042-S
Foreign athletes and entertainers who earn income in the United States follow special tax withholding and reporting rules. Payers use
IRS Form 1042-S: Withholding Tax Credit for Foreign Persons
Nonresident aliens (NRAs) can claim a withholding tax credit on Form 1040-NR, U.S. Nonresident Alien Income Tax Return using the
Why would an Orchestra file Form 1042-S?
An orchestra must file Form 1042-S when it pays U.S.-source income to nonresident aliens. These can include performers, conductors, guest
What are the different income codes for various types of U.S.-source income?
In the context of Form 1042-S, which reports U.S.-source income paid to nonresident aliens, there are various income codes used
Does an international winner receive a W-2G or a 1042-S form?
When it comes to gambling winnings, the tax reporting requirements differ depending on whether the winner is a U.S. resident
Chapter 3 vs Chapter 4 on Form 1042-S: Key IRS Withholding Differences
IntroductionIRS Form 1042-S is used to report certain U.S.-source income paid to foreign persons, along with any U.S. federal tax
Chapter 4 FATCA Explained: Preventing Tax Avoidance & Form 1042-S Reporting
The primary purpose of Chapter 4 (the Foreign Account Tax Compliance Act (FATCA)) was to address the issue of U.S.
Does everyone who files a 1042-S have to file a 1042 as well?
Yes. If you are required to file Form 1042-S, you generally must also file Form 1042. These forms work together
What is a qualified intermediary for a 1042-S form?
A qualified intermediary (QI) for a 1042-S form is an intermediary, usually a foreign financial institution, that has entered into
1042-S Scenario: Casino and Foreign Winner’s Gambling Winnings
When a foreign tourist wins money at a U.S. casino, the IRS requires reporting through Form 1042-S. Gambling winnings for
1042-S Scenario: Book Publisher and Foreign Author Royalties
When a U.S. publisher pays royalties to a foreign author, those payments count as U.S.-source income. The publisher must report
How can I get refund from the total withholding credit on Form 1042-S?
To get a refund from the total withholding credit on Form 1042-S, follow these steps: 1. Complete Your U.S. Tax
What is the difference between IRS Form 1042 and 1042-S?
Forms 1042 and 1042-S are both related to tax reporting for payments made to foreign persons, but they serve different
IRS Form 1042-S: What is a Withholding Agent?
A withholding agent is any person, business, or organization (U.S. or foreign) that is responsible for paying income to a
What is Form 1042-S and Who Needs to Submit One?
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.