The IRS 1042-S form is used to report income paid to foreign persons, including non-resident aliens and foreign entities, that is subject to withholding. This form provides essential information about the income, the recipient, and the taxes withheld. Understanding the 1042-S is crucial for compliance with U.S. tax regulations and for ensuring that foreign recipients receive accurate tax documentation.
The IRS 1042-S form plays a crucial role in the reporting of income paid to foreign persons, including non-resident aliens and foreign entities. This form is essential for U.S. withholding agents who must report payments made to non-U.S. residents, such as interest, dividends, royalties, and certain other types of income. It serves to document the amount of income paid and any taxes withheld, ensuring compliance with U.S. tax laws. Each year, this form must be filed by March 15 for the preceding calendar year, and it must be provided to both the IRS and the recipients of the income. Understanding the nuances of the 1042-S form is vital for both payers and recipients to avoid potential penalties and ensure accurate tax reporting. Additionally, the information on this form is used by the IRS to track income that may be subject to taxation under U.S. law, making it a key component of international tax compliance.
Foreign Person’s U.S. Source Income Subject to Withholding
2025
OMB No. 1545-0096
Department of the Treasury
Copy A for
Form 1042-S
Go to www.irs.gov/Form1042S for instructions and the latest information.
Internal Revenue Service
UNIQUE FORM IDENTIFIER
AMENDED
AMENDMENT NO.
1 Income
2 Gross income
3 Chapter indicator. Enter “3” or “4”
13d City or town, state or province, country, ZIP or foreign postal code
code
3a Exemption code
4a Exemption code
3b Tax rate
.
4b Tax rate
13e Recipient’s U.S. TIN, if any
13f
Ch. 3 status code
5 Withholding allowance
13g Ch. 4 status code
6 Net income
13h
Recipient’s GIIN
13i
Recipient’s foreign tax identification
13j LOB code
number, if any
7a Federal tax withheld
7b Check if federal tax withheld was not deposited with the IRS because
13k Recipient’s account number
escrow procedures were applied (see instructions)
7c Check if withholding occurred in subsequent year with respect to a
13l Recipient’s date of birth (YYYYMMDD)
partnership interest .
. . . . . . . . . . . . .
7d Check if you are a qualified intermediary, withholding foreign
partnership, or withholding foreign trust revising its reporting on Form
14a Primary withholding agent’s name (if applicable)
1042-S to report to a specific recipient
8Tax withheld by other agents
9 Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)
14b
Primary withholding agent’s EIN
15 Check if pro-rata basis reporting
(
)
10
Total withholding credit (combine boxes 7a, 8, and 9)
15a
Intermediary or flow-through entity’s EIN, if any
15b Ch. 3 status code
15c Ch. 4 status code
11
Tax paid by withholding agent (amounts not withheld) (see instructions)
15d
Intermediary or flow-through entity’s name
12a Withholding agent’s EIN
12b Ch. 3 status code
12c Ch. 4 status code
15e
Intermediary or flow-through entity’s GIIN
15f Country code
15g Foreign tax identification number, if any
12d Withholding agent’s name
15h
Address (number and street)
12e Withholding agent’s global intermediary identification number (GIIN)
15i
City or town, state or province, country, ZIP or foreign postal code
12f Country code
12g Foreign tax identification number, if any
16a Payer’s name
16b Payer’s TIN
12h
16c Payer’s GIIN
16d Ch. 3 status code
16e Ch. 4 status code
12i
17a State income tax withheld
17b Payer’s state tax no.
17c Name of state
13a
Recipient’s name
13b Recipient’s country code
13c
For Privacy Act and Paperwork Reduction Act Notice, see instructions.
Cat. No. 11386R
Form 1042-S (2025)
Copy B
for Recipient
15i City or town, state or province, country, ZIP or foreign postal code
(keep for your records)
U.S. Income Tax Filing Requirements
Generally, every nonresident alien individual, nonresident alien fiduciary, and foreign corporation with U.S. income, including income that is effectively connected with the conduct of a trade or business in the United States, must file a U.S. income tax return. However, a return is generally not required to be filed by a nonresident alien individual, nonresident alien fiduciary, or foreign corporation if such person was not engaged in a trade or business in the United States at any time during the tax year and if the tax liability of such person was fully satisfied by the withholding of U.S. tax at the source. See the instructions for Forms 1120-F and 1040-NR for more information. Corporations file Form 1120-F; all others file Form 1040-NR. You may get the return forms and instructions at IRS.gov, at any U.S. Embassy or consulate, or by writing to: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.
En règle générale, toute personne physique étrangère non résidente, tout fiduciaire étranger non résident et toute société étrangère ayant des revenus américains, y compris des revenus effectivement liés à la conduite d’un commerce ou d’une entreprise aux États-Unis, doit déposer une déclaration d’impôt sur le revenu aux États-Unis. Toutefois, une déclaration n’est généralement pas requise de la part d’un particulier étranger non résident, d’un fiduciaire étranger non résident ou d’une société étrangère si cette personne n’a pas exercé d’activité commerciale aux États-Unis à un moment quelconque de l’année fiscale et si l’obligation fiscale de cette personne a été entièrement satisfaite par la retenue à la source de l’impôt américain. Voir les instructions des formulaires 1120F et 1040NR pour plus d’informations. Les sociétés déposent le formulaire 1120-F; toutes les autres déposent le formulaire 1040-NR. Vous pouvez obtenir les formulaires de déclaration et les instructions sur le site IRS.gov, dans n’importe quel bureau de poste des États-Unis, ou en écrivant à l’ambassade ou au consulat de l’Union européenne: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.
Explanation of Codes
Box 1. Income Code.
Code
01Interest paid by U.S. obligors—general
02Interest paid on real property mortgages
03Interest paid to controlling foreign corporations
04Interest paid by foreign corporations
05Interest on tax-free covenant bonds
22
Interest paid on deposit with a foreign branch of a domestic
Interest
30
corporation or partnership
Original issue discount (OID)
29
Deposit interest
31
Short-term OID
33
Substitute payment—interest
51
Interest paid on certain actively traded or publicly offered
securities1
54
Substitute payments—interest from certain actively traded
or publicly offered securities1
Dividend
06
Dividends paid by U.S. corporations—general
07
Dividends qualifying for direct dividend rate
08
Dividends paid by foreign corporations
Por lo general, toda persona que es un extranjero no residente, todo fiduciario extranjero no residente, y toda sociedad anónima extranjera que perciba ingresos estadounidenses, inclusive de los ingresos que son efectivamente conectados con la operación de un comercio o negocio ubicado en los Estados Unidos, debe presentar una declaración del impuesto estadounidense sobre los ingresos. Sin embargo, por lo general no se requiere que un individuo extranjero no residente, una sociedad anónima extranjera u organismo fideicomisario extranjero no residente presenten una declaración si dicha persona no participaba en ningún comercio o negocio ubicado en los Estados Unidos en ningún momento durante el año tributario, y la responsabilidad tributaria de dicha persona fuera liquidada completamente mediante la retención del impuesto estadounidense en la fuente del ingreso. Consulte las instrucciones de los Formularios 1120F y 1040-NR para obtener más información. Las sociedades anónimas presentan el Formulario 1120-F, todos los demás presentan el Formulario 1040-NR. Puede obtener los formularios de declaración y sus instrucciones en IRS.gov, en cualquier embajada o consulado de los Estados Unidos, o al escribir al: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.
Grundsätzlich muss jede natürliche Person ohne Wohnsitz im Land, jeder Treuhänder ohne Wohnsitz im Land und jede ausländische Gesellschaft mit Einkünften in den USA, einschließlich Einkünften, die tatsächlich mit der Ausübung einer gewerblichen oder geschäftlichen Tätigkeit in den Vereinigten Staaten in Zusammenhang stehen, eine US-Einkommensteuererklärung einreichen. Eine Steuererklärung muss jedoch von einem nicht in den USA ansässigen Ausländer, einem nicht in den USA ansässigen Treuhänder oder einem ausländischen Unternehmen im Allgemeinen nicht eingereicht werden, wenn diese Person zu keinem Zeitpunkt während des Steuerjahres in den Vereinigten Staaten einer gewerblichen oder geschäftlichen Tätigkeit nachgegangen ist und die Steuerschuld dieser Person durch den Einbehalt der US-Quellensteuer vollständig beglichen wurde. Weitere Informationen finden Sie in den Anweisungen für die Formulare 1120F und 1040NR. Unternehmen reichen das Formular 1120-F ein, alle anderen reichen das Formular 1040-NR ein. Sie können die Rücksendeformulare und Anweisungen auf IRS.gov erhalten, auf jeder US-Botschaft oder Konsulat oder schriftlich an: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.
34
Substitute payment—dividends
40
Other dividend equivalents under IRC section 871(m)
52
Dividends paid on certain actively traded or publicly offered
53
Substitute payments—dividends from certain actively traded
56
Dividend equivalents under IRC section 871(m) as a result of
applying the combined transaction rules
09
Capital gains
Industrial royalties
Motion picture or television copyright royalties
12
Other royalties (for example, copyright, software,
broadcasting, endorsement payments)
Other
13
Royalties paid on certain publicly offered securities1
14
Real property income and natural resources royalties
15
Pensions, annuities, alimony, and/or insurance premiums
16
Scholarship or fellowship grants
17
Compensation for independent personal services2
18
Compensation for dependent personal services2
19
Compensation for teaching2
See back of Copy C for additional codes
1This code should only be used if the income paid is described in Regulations section 1.1441-6(c)(2) and the withholding agent has reduced the rate of withholding under an income tax treaty without the recipient providing a U.S. TIN or an FTIN.
2If compensation that would otherwise be covered under Income Codes 17 through 20 is directly attributable to the recipient’s occupation as an artist or athlete, use Income Code 42 or 43 instead.
Filling out the IRS 1042-S form requires attention to detail and accuracy. This form is used for reporting income paid to non-resident aliens and foreign entities. Make sure you have all necessary information on hand before you start, as this will streamline the process and help prevent errors.
What is the IRS 1042-S form?
The IRS 1042-S form is used to report income that is paid to foreign persons. This includes non-resident aliens and foreign entities. The form details the income type, the amount paid, and any tax withheld on that income. It's essential for both the payer and the recipient to understand this form, especially for tax purposes.
Who needs to file a 1042-S form?
Generally, any U.S. withholding agent who pays income to a foreign person must file this form. This includes universities, businesses, and other organizations that make payments to non-residents. If you receive income from U.S. sources as a foreign individual or entity, you may also receive a 1042-S form.
What types of income are reported on the 1042-S?
The 1042-S form can report various types of income, including:
Each type of income has specific rules regarding taxation and withholding, which the form reflects.
How do I know if tax was withheld from my payment?
The 1042-S form will indicate if any tax was withheld from your payment. Look for the box labeled "Federal Tax Withheld." If there is an amount listed there, it means that tax was withheld before you received your payment.
When should I expect to receive my 1042-S form?
Payers are required to send out the 1042-S forms to recipients by March 15 of the year following the payment. If you have not received your form by this date, it’s a good idea to reach out to the organization that made the payment to inquire about it.
Do I need to file the 1042-S form with my tax return?
While you do not file the 1042-S form itself with your tax return, you should keep it for your records. You will need the information from the 1042-S to accurately report your income and any taxes withheld on your tax return.
What should I do if I believe there is an error on my 1042-S form?
If you find an error on your 1042-S form, contact the withholding agent who issued the form. They can correct any mistakes and issue a revised form. It's important to resolve any discrepancies to ensure accurate tax reporting.
Filling out the IRS 1042-S form can be a daunting task, especially for those unfamiliar with tax forms. One common mistake is providing incorrect information about the recipient's name or taxpayer identification number (TIN). This can lead to significant delays in processing and may result in penalties. Always double-check the spelling of names and ensure that the TIN matches the official documents.
Another frequent error involves misclassifying income types. The IRS 1042-S form requires you to categorize income accurately, whether it is for royalties, dividends, or other types of payments. Misclassification can lead to improper tax withholding and may complicate the recipient's tax situation. Take the time to review the instructions carefully to avoid this pitfall.
Many people also overlook the importance of timely filing. The IRS has specific deadlines for submitting the 1042-S form, and failing to meet these can result in penalties. It is crucial to stay organized and aware of these deadlines to ensure compliance. Setting reminders can be a helpful strategy to avoid last-minute rushes.
Finally, some individuals neglect to provide the required documentation that supports the information reported on the form. This includes withholding certificates and any other relevant documentation that may be necessary. Proper documentation not only supports your claims but also protects you in case of an audit. Always keep thorough records to back up your filing.
The IRS 1042-S form is an important document for reporting income that is subject to withholding for non-resident aliens. When dealing with this form, there are several other documents that may also be required or helpful in the process. Below is a list of forms and documents commonly associated with the IRS 1042-S form.
Understanding these documents can help ensure compliance with U.S. tax laws and facilitate accurate reporting of income. Always consider consulting a tax professional if there are any questions regarding the forms or the filing process.
The IRS Form 1099 is a well-known document used to report various types of income other than wages, salaries, and tips. Like the 1042-S, the 1099 form serves to inform the IRS about payments made to individuals who are not employees. Both forms are used to report income received by non-residents or foreign entities, ensuring that the IRS has accurate information for tax purposes. The 1099 comes in several variations, each designed for specific types of income, such as interest, dividends, or freelance earnings, similar to how the 1042-S focuses on income paid to foreign persons and entities.
Form 1040-NR is another document that shares similarities with the 1042-S. This form is specifically for non-resident aliens who are required to file a U.S. tax return. Just like the 1042-S, the 1040-NR provides a means for non-residents to report their income and pay any taxes owed. While the 1042-S reports income paid to non-residents, the 1040-NR allows those individuals to declare their total income and calculate their tax liability. Both forms are crucial for compliance with U.S. tax laws for non-resident individuals.
The W-8 series of forms, including the W-8BEN and W-8ECI, are also comparable to the 1042-S. These forms are used by foreign individuals and entities to certify their foreign status and claim any applicable tax treaty benefits. The information provided on the W-8 forms helps withholding agents determine the correct amount of tax to withhold from payments made to foreign persons. Similar to the 1042-S, the W-8 forms play a vital role in ensuring that the correct tax treatment is applied to income earned by non-residents.
Form 1098 is used to report mortgage interest received by lenders from borrowers. While it serves a different purpose than the 1042-S, both forms are essential for reporting income to the IRS. The 1098 provides information about the amount of interest paid, which can be deductible for the borrower. In contrast, the 1042-S reports payments made to non-residents, ensuring that the IRS has a complete picture of income transactions. Both forms help maintain transparency in financial reporting.
Form 3921 is used to report the transfer of stock acquired through an employee stock purchase plan. While it specifically pertains to employee stock options, it shares the same objective as the 1042-S: to report income to the IRS. Both forms ensure that the IRS receives accurate information regarding income that may be subject to taxation. The 3921 form focuses on employee benefits, while the 1042-S addresses payments made to foreign individuals and entities.
Form 1095-A is a health insurance marketplace statement. It provides information about health coverage obtained through the marketplace. While it is not directly related to income reporting like the 1042-S, both forms are essential for tax compliance. The 1095-A helps individuals determine their eligibility for premium tax credits, while the 1042-S informs the IRS about payments made to non-residents. Both forms contribute to the broader framework of tax reporting and compliance.
Form 1099-DIV is used to report dividends and distributions to shareholders. Similar to the 1042-S, it ensures that the IRS is informed about income paid to individuals. The 1099-DIV focuses specifically on dividend income, while the 1042-S covers a wider range of payments to non-residents. Both forms play a critical role in ensuring that taxpayers report their income accurately and that the IRS can track taxable transactions.
Form 1099-INT is used to report interest income earned by individuals. Like the 1042-S, this form is essential for informing the IRS about payments made to taxpayers. The 1099-INT is specifically focused on interest payments, while the 1042-S encompasses a broader category of payments to foreign individuals and entities. Both forms help ensure that income is reported correctly and that appropriate taxes are paid.
Lastly, Form 1042 is used by withholding agents to report tax withheld on payments made to foreign persons. This form is closely related to the 1042-S, as both are designed to address the tax obligations of non-residents. While the 1042 focuses on the withholding aspect, the 1042-S reports the actual payments made. Together, they provide a comprehensive view of the tax implications for foreign entities and individuals receiving income from U.S. sources.
When filling out the IRS 1042-S form, it is crucial to approach the task with care and attention to detail. This form is used to report income that is subject to withholding for non-resident aliens and foreign entities. Here are some important dos and don’ts to keep in mind:
The IRS 1042-S form can be a source of confusion for many. Here are six common misconceptions about this form, along with clarifications to help you understand its purpose and requirements.
Understanding these misconceptions can help ensure compliance and avoid potential issues with the IRS. Always consult with a tax professional if you have specific questions about your situation.
The IRS 1042-S form is essential for reporting income paid to foreign persons. Here are some key takeaways to keep in mind:
Filling out the 1042-S correctly is vital for both the payer and the recipient. Staying organized and informed will help streamline the process.
Free IRS 1042-S Template in PDF