Form 1042-S - Federal or State Withholding

Form 1042-S - Box 7a Federal Tax Withheld or Box 17a State Income Tax Withheld

Form 1042-S is used to report amounts paid to foreign persons (including persons presumed to be foreign) that are subject to tax withholding, even if no amount is deducted and withheld from the payment because of a treaty or code exception to taxation or if any amount withheld was repaid to the payee. It is also used to report amounts withheld under Chapter 3 of the Internal Revenue Code.

If you determine that you need to file a Form 1040 resident tax return rather than Form 1040NR, you can enter this data in to TaxAct, although Form 1042-S is not available in the 1040 program.

If Form 1042-S lists federal tax withheld in box 7a or state tax withheld in box 17a, 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.

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
  2. Click Form 1099-MISC in the Federal Quick Q&A Topics menu
  3. Click +Add Form 1099-MISC to create a new Form 1099-MISC
  4. Click Form 1099-MISC Quick Entry to open the Quick Entry window
  5. Enter all of the applicable information from your Form 1099-MISC, including information for Boxes 4 and/or 16
  6. Close the Quick Entry window
  7. Assign the Form 1099-MISC you just entered to either Schedule C or Form 1040/Form1040NR, Other Income from the Assigned form or schedule drop-down list
  8. On the screen titled What type of income was reported on this Form 1099-MISC?, make the appropriate selection
  9. If you selected Other non-business income on the previous screen, check the box to confirm that the income is non-business income and is not subject to self-employment taxes.

For more information, see the IRS Instructions for Form 1042-S and Form 1042-S.