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Forms 1042-S, Foreign Persons U.S. Source Income Subject to Withholding, must also be filed electronically if the withholding agent is a partnership that has more than 100 partners.
1042 is used for tax withheld on certain income paid to foreign persons and has specific requirements for reporting payments while 1099 is used for reporting payments made to non-employee individuals or entities and has various types of forms to document different types of payments.
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.
Although Form 1042-S can be filed the old-fashioned way, the IRS does permit electronic filing of the form. The newer electronic method is actually required for withholding agents who have 250 or more forms to submit. Financial institutions are also required to file electronically.
You must file Form 1042 whether or not any tax was withheld or was required to be withheld if you are required to file Form 1042-S. Form 1042-S must be filed to report all items of income described under Income Subject to Withholding on page 2, except income that is required to be reported on Form W-2.
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Form 1042-S is not available in TaxAct, but you can enter the data into the program as wages on Line 1 of Form 1040 U.S. Individual Income Tax Return. To enter or review information from your Form(s) W-2 Wage and Tax Statement in the TaxAct program, see Form W-2 - Entering in Program.
1042 S From the Federal menu in TurboTax find Wages and Income. Find Less Common Income. Choose Miscellaneous Income, 1099-A, 1099-C. Choose Other Reportable Income. Enter a description of the treaty and the adjustment as a negative number.
Whatever the reason, Form 1042-S represents taxable income, so youll need to include it on your Canadian tax return and, if the right amount of taxes havent been withheld, you might also need to file a U.S. return.