How to Complete IRS Form 1042-S for Payments to Nonresidents

The IRS Form 1042-S should be filed by a U.S. person or company that makes payments of U.S. source income to a nonresident.

In this video, I cover a common example where a U.S. corporation is paying U.S. source dividend income to a nonresident shareholder.

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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

#IRS #Form1042S #Form1042

[CurmudgeonMedia]

Not all heroes wear capes. Some make YouTube videos that tell you about tax forms

[mariellafurrer]

A huge thank you from Kenya, Jason!! I am helping my mum with her pension and these forms are so confusing! previously we were filling WEN-8 forms... not sure why that has changed but I am really grateful for your help.

[federicofanloquintar]

Dude, this video is life changing. Thanks so much!

[stennmonson]

Dividends are financial in nature and considered a "withholdable" payment under FATCA and would require a ch. 4 exemption, ch. 4 tax rate and Ch. 4 status code.

[carabaye]

im still confused, do i need to send this to anyone or just keep it as it is, everything is filed just like in your video i’m still unsure on what i have to do with it

[emsleath]

Excellent video. Quick question. If the intermediary didn't withhold the taxes and need to do box 11 do they still fill in the amount of withholding in box 7 and 10? Thank you so much again for this video.

[عالمالأفرشةالمنزلية-رخ]

I just received the Form 1042-s earlier today, I'm a non US citizen living in morocco, I don't know what to do, the only US company I've worked for is YouTube AdSense, do I need to fill this form or just leave it ?

[VeeeerBGMI]

Is this working on medium partner program?

[GannicusMisteriosdeHonduras]

I have federal tax withheld amount of $1880 and Gross income of $6300, what do I do sir?

[osasokunbor]

Thank you so much for the information nice one

[bosssoundsnyc]

Hi Jason, I run an LLC (music agency) and am filling out 1042-S for an individual songwriter in New Zealand to whom I paid royalties. The US-NZ treaty has a 10% LOB for copyright royalties. My question is what do I put in box 13j for LOB code? Is it "Other"? Thank you so much for all your help here!

[marlaer]

i got error report,

We did not issue you a year-end tax form (1099-MISC, 1099-NEC, and 1042-S.) because of one of these reasons:
If you are a Non-U.S. person:
You received non-U.S. based payments, which are not reportable on the Form 1042-S.

whaat???

[Thepursuitoftastiness]

I have a question. I received this form, and I have "7" in the "Gross income" field and "2" in the Federal Tax Withheld field. What should I do?

[FadiFlashi]

Thank you for the video.. My question is DO I NEED to do anything with this form? I received it today and extremely confused. And if I have to fill it so where do I submit it?

[hupatel]

Question
My client received 1099 NEC from one US based company. Who should file 1042 S? My client who is an international student? Or the US based company need to file 1042 S?

[objectifpluton-argentcrypt]

Hi, I am not us resident and i received this by mail. Tax withheld is filled 8. I don't understand if i have to do something, because adsense already deduce us tax when pay me. Tax withheld is what i already paid, right? So is this form just to get a refund? Can i just ignore it?

[avinashravichandran]

I have interest income on 1042-s, but was exempt from tax. My Box 3a is "02" and 4a is "15".
"02" refers to - exempt under IRC (code should only be used if no other specific chapter 3 exemption code applies)
"15" refers to - Payee not subject to chapter 4 withholding.

I was a non-resident at the time of interest posting date. Later, I passed the substantial presence test in that year and became a resident. With myself being present in the US from Jan 1, 2022, I 'm regarded as a US Resident starting from Jan 1. In this case, should the bank have withheld taxes or the exemption still holds?

Now, should I show the 1042-s income in 1040 under:
- line 2a as Tax exempt interest (or)
- line 2b as Taxable interest (or)
- line 8 as Other income from Schedule 1?

[digitalanaloguehamradio]

Thank you Jason for this informative video very helpful. I filled in all the information last year about tax. I am a YouTuber in the UK. What happens if I do nothing thanks?

[MuslimOO]

hello Jason
I'm a non-US resident foreign national working as a content creator at Amazon now I lost my EIN number, and I need it now. Is my ein number on my 1042s form every year 12a? Or should I call the IRS?

[elizawong]

Hi Jason, I am Canadian and received 1042s from my bank. I believed I need to apply itin together with income tax (1040nr). Basically they are dividends. First stock 3a 00; 4a 15; 3b 37; 4b 00. Second and third 3a 00; 4a 15; 3b 15 ; 4b 00. I read through 1040NR, but not sure which line I need to fill in. Can u provide yr professional advice pls? Thanks