Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding 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 U.S. Individual Income Tax Return resident tax return rather than Form 1040-NR U.S. Nonresident Alien Income Tax Return, you can enter this data in to TaxAct, although Form 1042-S is not available in the 1040 program.

If you have federal tax withheld in Box 7a or state tax withheld in Box 17a when you fill out Form 1042-S, you can enter this data on a Form 1099-MISC in the program. You must paper file your return in this instance and include Form 1042-S with your tax return.

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click Form 1099-MISC, then click + Add New Copy of Federal Form 1099-MISC to create a new copy of the form or click Edit to review a form already created (desktop program: click Review instead of Edit).
3. Click Step-by-Step Guidance, then continue with the interview questions until you reach the screen titled 1099-MISC: Enter information on form.
4. Enter all of the applicable information, then click Continue.
5. On the screen titled What schedule or form should the income from this Form 1099-MISC be reported on? Click the Assigned schedule or form drop-down, click Schedule C or Form 1040/1040-NR, Other, then click Continue.
6. Continue with the rest of the interview questions for the form.

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

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.