How to Complete IRS Form 1042-S for Payments to Nonresidents
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- Опубліковано 8 чер 2024
- 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.
Form 1042-S and 1099s for UA-cam and Twitch: • Twitch & UA-cam Forms...
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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
If you are a non-U.S. person that received a Form 1042-S as a Twitch streamer or UA-camr, check out this video on why you received those this year: ua-cam.com/video/NLGFIxa1Ypw/v-deo.html
Not all heroes wear capes. Some make UA-cam videos that tell you about tax forms
Happy to help!
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.
Dude, this video is life changing. Thanks so much!
Glad it helped!
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.
Thank you so much for the information nice one
Glad to hear it was helpful. Thank you for watching!
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!
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.
Hi, I appreciate your wonderful lecture about form 1042-S.
When the recipient of dividends is an Australian Company which holds directly at least 10% of voting power, it seems that the withholding rate will be 5% instead of 15% based on protocol (Article 10 (2) and (3) in 2001.
And, If the Australian company holds 80% or more, the Protocol says there will be no withholding tax.
Is my understanding correct?
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?
Hi, I was wondering about the 1042 form, who files the 1042 as there is a lot of talk about the 1042 S but not much information about the 1042 which as you mentioned is a sum (aadition) of the various 1042 S's. Many thanks
1 quick question - Does the interest payment for the intercompany loan to foreign related party (Netherlands) is reportable in Form 1042? According to treaty rules, 0% on withholding of Interest payment to Netherlands. Please clarify
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?
Hi Sir.
I have a specific query.
I have a US Client who had hired 10 Indian Contractors for Techincal Consultancy. Services were provided in US. No tax was withheld. Please guide whether Form 1042, 1042-S, 1042-T is applicable
Hi Jason, We have already applied for the federal tax return, and received a 1042-s from that filled by bank of America this week, regarding our saving account. It shows that we received only $148 as an interest, also shows that tax rate is $0, federal tax withheld is $0, total withholding credit is$0. So my question is are we still have to send this letter to IRS.?As I mentioned we have already sent.I am not sure even the tax rate $00.00 , do we still need to send? thanks a lot.Hande :)
Is this working on medium partner program?
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
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?
I have federal tax withheld amount of $1880 and Gross income of $6300, what do I do sir?
Corporation to corporation dividend payment, should that be 5% withholding tax rate instead?
I'm from PR and moved to the states from '19 to '22 and so my worked payed some % of my income to Fidelity investments. So I moved back to PR and withdrew that money. I recieved a 1042s form. I'm a us citizens since the day I was born how am I considered a non resident?
Hi..i opened an acct using passport since i was still waiting for my green card..but i received my permanent resident card after 5 days...do i need to fill out this frm? Or just send my green card copy to the bak
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???
Hi Jason, Excellent video!!! ok after fill the form, how do i send and pay tax to IRS? by mail? tks
The best way to pay the taxes is through the EFTPS portal. You can also do a direct bank wire, but the EFTPS system is the most efficient and reliable method.
Hi Jason, I have a few Questions : 1 - I was never sent anything in the mail (I live in Canada). 2 - I CAN NOT find anything on the internet where I can eFile for free. 3 - I called up the IRS, was put on hold for 33 minutes & they hung up on me so now I have a $30 phone bill. 4 - Contacted my local H&R Block, they said "as WE did NOT do YOUR taxes for 2022, WE can NOT help you". 5 - I contacted the company (via email) that I filed my 2022 Canadian Taxes with via eFile & no reply after 1 week. ANY SUGGESTIONS...?
Hi, I'm a graphic artist creator who sell t-shirts stickers and related apparel stuff on a online website and they sent me a 1042-s form but unfortunately the country name is incorrect and the income on the form is 1.. should I do anything or it's okay and there's no worry?
Won day I won 2 jackpots of 1600 dollars each and I was given 1042s for those 2 jackpots. Now I just checked that there is one more extra 1042 S with 1600 dollars income. How to to know its a duplicate copy of an existing 1042 S or its not. It is making me confused if I won 2 jackpots or 3 jackpots that day. I need information for my tax purposes next year. Let me know if that 1042 s is a copy or unique form created for new jackpot. This will confirm me if I won 3 jackpots with sake type of amounts that day. I might not be sure if won 2 or 3. The bar code and unique identifiers in all these 3 forms are different.
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?
Thank you for watching. This video was designed for U.S. companies that need to file Form 1042-S. If you received Form 1042-S from a U.S. company, you have different obligations. I recently posted a video covering 1042-S for UA-camrs: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi Jason, I have some doubts about this form. I made some stock investments and paid dividends for them.
The bank sent me this form already filled (at least up until box 13l) but I'm unclear on what are the next steps in the process? Do I have to pay the amount withheld? If so, how and where do I make the payment? Do I have to fill something else?
Thanks in advance.
The Form 1042-S is only prepared and filed by the payor of the income, so in this case, the bank. If you are a non-U.S. resident, whether you need to file a tax return will depend upon your individual facts and circumstances. Nonresidents required to file a return must submit a Form 1040-NR.
Thank you Jason for this informative video very helpful. I filled in all the information last year about tax. I am a UA-camr in the UK. What happens if I do nothing thanks?
I have the same question, don't know how to fill out this form (im from Sweden)
Generally, you don't have to do anything, so long as the information on the Form 1042-S is 100% accurate. I just posted a follow up video which should provide more clarity: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
@@JasonDKnott Thank you mate for the reply really appreciate it
Hi Jason, Can I Claim the federal tax withheld on the form 1042s line 7a? Thanks!
Maybe. If the amount of withholding taxes exceeded the required amount, a nonresident can file a Form 1040-NR to report the income, tax, and reclaim the excess.
Hi Jason, I have a client that went to a casino near by and won some money, he was given a 1042-s form but he resides in the US and has an ITIN number to report taxes, how do we integrate 1042-S to the 1040 so he can report it on his taxes? (Illinois)
If he is a U.S. tax resident and must file a Form 1040, the gambling winnings are reported similarly to a Form W-2G. Any withholding taxes on the Form 1042-S are reported on the appropriate line items of the 1040.
Hi Jason, I'm from Italy and this Form arrived today with 'Copy B/C/D'. I don't understand what I should exactly do... it's my very first time doing this and I'm scared, not gonna lie.
By looking down on the comments I noticed that this should be just... the one sent by UA-cam? So I don't have to do anything? It's like a "We are informing you that we already did this thing for you." type of thing?
I have read that I have to pay if the 'Federal tax withheld' is more than 0, correct? (Which is my case, it says 0)
Again... I don't have to do anything, right? Like nothing ever happened? Just making sure I'm not being dumb, I wouldn't want to accidentally evade taxes or something...
We posted a new video that covers these topics. Hope this helps: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi thank you so much for the video. I have received 1042-s so do I have something to do or it's just a copy that tell me that the company has paid the taxes . I mean do I have to do something or not.
Generally, nothing further is required. However, there are always exceptions. We just posted a video covering Form 1042-S issues for UA-cam and Twitch streamers. You can view that video here: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi, Thanks for making the video. I have some RSU stock via my earlier employer and I received 1042S. I'm a non-US citizen living in India. Just worked for a US company here in India and have done the tax filing locally here. Do I need to complete this form?
The Form 1042-S is not prepared by the recipient, it is completed by the payor of the income.
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?
The Form 1042-S is filed by the payor of the income. Not the recipient of the income.
Hi @Jason, I'm a non-US resident and received form 1042-s for my tax been paid, how can i get started to claim? Please help.
You may be eligible for a refund claim if the amount of taxes withheld was in excess of what was required. We just posted a video which covers some of these issues in more detail: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi Jason We are Canadian citizens living in the USA on E2 visas. Last year my Daughter received a Scholarship. University Withholding tax 30% . Do we count tax purposes us residents or not.
Tax rules for E-2 visa holders is complex. It is a nonimmigrant visa, which means your U.S. tax residency depends upon how much time you are physically present in the U.S. (i.e., the Substantial Presence Test). These same rules apply to your dependent children.
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 UA-cam AdSense, do I need to fill this form or just leave it ?
We just uploaded a video that covers this topic in more detail: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
I enjoyed watching your video, but I was really hoping for you to address boxes 13f and 13g, which were not.
Hello! Thank you for watching our video. If you need more assistance with preparing and filing Form 1042 and Form 1042-S, please email our office at: info@knottpllc.com
Thank you!
@@JasonDKnottHola se puede pedir reembolso de impuestos para los extranjeros que trabajamos para EEUU con el formulario 42S?
So, where do I find the treat for Australia, please?
The IRS publishes a full list of all current tax treaties on the following website: www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z
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?
Generally, nothing further is required. However, there are always exceptions. We just posted a video covering Form 1042-S issues for UA-cam and Twitch streamers. You can view that video here: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi Jason the problem I have is how to send my forms to irs can u advise me in someway
It's highly recommended that you electronically file the forms. You can use an approved tax preparation software with efile capabilities, or you can use a third party service provider, such as www.Tax1099.com
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
If all of the information on the Form 1042-S is accurate, and the amount of federal withholding taxes is correct in Box 7a, then you generally do not have to file anything further with the IRS. It is only in cases where the amounts are incorrect, or the creator is engaged in a U.S. trade or business and has ECI, where they must file additional forms with the IRS.
@@JasonDKnott okay, thank you so much. another question, if someone doesn’t complete forms will the IRS send out a message or anything?
Hello sir, I got this form on Google AdSense it shows $1880 , what do I do next? I'm not a US resident, and they took 30% of my UA-cam income from June to December 2021, how do I get that amount paid?
I just posted a follow up video which should provide some more guidance on what to do next: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hello, Jason! I received the same form from Google since I have a small youtube channel. In the Federal tax withheld area, it has 0. Do I have to pay something or what should I do? Thank you.
Google is responsible for withholding the taxes, if any, on your AdSense earnings. Generally you don't have to do anything with the Form 1042-S, unless there was an error and taxes should have been withheld
@@JasonDKnott Thank yo for the response. Last one, do I have to fill it up and send it back to them or anywhere else?
Hi Letizia!I have exactly the same situation.Some days ago I have got this form 1042-S with federal tax a withheld 0. I am living in France. I am searching now what to do with this document
@@JennelinItaly me too I have the same situation. I have a small UA-cam channel too and received this 4 days ago and I live here in Japan. I think if it’s 0 and no error at all, We don’t have to fill it out and send. I think it’s just our copy just in case we needed reference in tax filing in our country of residency. Though, I’m not 100% sure so I’m kinda checking on UA-cam and found this vid.
Thanks Jason btw for the vid
@@JPLeGrandOfficial Thank you. I really hope we don’t need to do anything with this.
Hi Jason, I am a streamer on Twitch and live in the UK and I am glad there is a video on this, but I am not the smartest person when it comes to this kind of thing. Do I need to fill in the 1042-S form and pay tax to IRS and to the HRMC as well?
I got the same, I don't think so. I think they are required to send the form to you.
when you do this let me know, i got same problem
I'm gonna try to ring them tomorrow and ask a few questions. See what they can do to assist. If I hear anything, I'll update here for you too
@@needhurry great :)
No, the Form 1042-S is prepared by the payor of the income, so Twitch in this case. Whether you need to file any tax return depends upon your activities within the US. I just did a video that covers this topic: ua-cam.com/video/NLGFIxa1Ypw/v-deo.html
Hello I have a question. If I have Federal tax withheld 0, do I have to do something?
It depends upon many factors. For example, if you claimed tax treaty benefits based on your country of residency, the US might pay you U.S. source income which is subject to a zero percent withholding tax rate, so the federal tax withheld is zero. There are other instances where the federal tax withheld is zero and that was incorrect....
@@JasonDKnott Okay, since I have 0, do I have to complete the document?
hello, I am just facing this tax about form 1042-S as shutterstock contributor. May I know this tax will pay by withholding agent ? nothing to do for payment for my side as non US citizens izz ?
If a withholding agent pays U.S. source income to a nonresident, the withholding agent is generally responsible for withholding the appropriate amount of taxes. Any federal income taxes withheld would be reported in Box 7a of the Form 1042-S
I am a non resident (Australia I have never been to the usa since opening my trading account) and I got copy b and c from my broker what does that mean for me?
Hello Jason! How are you? I have a question, where do I sign the form? And where do I sent it? I have the 2021 form. I haven´t found any information. Please help me!! Thank you very much!!!
The Form 1042-S is not signed by itself. If a company needs to file Form 1042-S, it should include a Form 1042 to reconcile the numbers, and ultimately the Form 1042 is signed by an authorized person.
@@JasonDKnott Thank you very much!!!
Hello I am a Polish UA-camr who recently got Form 1042-s. What should I do with it? Do I need to fill in some data and send it somewhere, or is this information only for me? Can I remove my taxpayer data from Google Payments if I don't want to continue making money from UA-cam and I closed my AdSense account.
I just recently posted a few videos covering this issue for UA-camrs. Have a look here: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi Jason, excellent video. If a company in the US makes payment to a non-US person who works outside the US, do they need to file form 1042-S? Thanks
Generally no. Compensation for personal services is sourced to where the person is physically doing the work. You can find the guidance in IRC sections 861 & 862. If it is foreign source income, there is generally no Form 1042 filing obligation because it is not US source.
@@JasonDKnott Thank you very much
@@JasonDKnott As a non-US person who gets payment from a US company in the US you have to complete US income tax return (1042-s) and income tax return in your own country (the one you are citizen). I am right am I ?
Hey, did you mean paying a foreign contractor? I am dealing with the same issue. I believe you have to.
@@nikitaroshka6626 Yeah I am from Europe and I will get paid from USA company but I don’t know how to feel or what to do with my taxes. If you learn something I would be so happy like so so happy
i really appreciate your effort to explain everything so well and in dept thank you. I would like to share something with you. I will start to work with Merch By Amazon which is platform that pays you royalties. I am non-US person. Amazon tells me that I must provide Form 1042-S as my income tax return. I would like to ask you is Form 1042-S (that you show in your video) is filled in by the payer (in this case Amazon) or by the non-US that earn the income. I am a little confused I understood from your video that Form 1042-S is provided by the payer. So it is not provided by the person who earn the income the non-US person or ? I would be grateful to understand the things more clear.
I think this video you have made is for the payer and you have other video describing the situation for the earner. For example: this video is for Merch By Amazon (the company Amazon) that have to provide Form 1042-S for the royalties it payed to his workers (earners). And that mean this video is not for me (as a non-US earner) is it? I am getting subscribed for your channel you explain everything very well and you even answer to the question in your comments. Thank you thank you, I hope you gain more followers.
Yes, this video is directed towards the payor of the income. If you are a company or an individual that makes payments of U.S. source income to a nonresident taxpayer, you may have to withhold taxes and report the income & taxes on a Form 1042-S. The recipient of the income would not complete the Form 1042-S. Only the payor completes a Form 1042-S.
I Have applied For the payment from UA-cam and i have received this form do i need to fill it submit it somewhere and what to do please can you help
Generally, you don't have to do anything with the Form 1042-S. However, there are certain circumstances where further action is required on your part. I just posted a follow up video which covers some of these topics: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hello, do you have to complete the form or do anything if in the form 7a), the figure is $0?
Sorry forgot to mention I am a non-US resident and I received this form. My question was weather I do to do anything. Thank you
We have a follow up video that discuss what, if anything, a non-U.S. content creator might need to do if they receive a Form 1042-S. You can view that video here: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi I don't even know what to do with this thing. My 7a Federal Tax whitheld is 1.00
What does it mean? Can you please help me?
I just did a video on this issue for Twitch and UA-cam creators, but the same principles apply for anyone that receives a Form 1042-S and is a nonresident: ua-cam.com/video/NLGFIxa1Ypw/v-deo.html
@@JasonDKnott thanks but in my case we talk about only 1 dollar! Ahahaha what I even have to do with this enormous pdf for only 1 dollar?
I'm a broke Spotify musician! Ahahaha
I am a US citizen living overseas. I made 401K withdrawals. Do i get a 1099 or a 1042-S from the withholding agent for income tax filing.
If you are a U.S. citizen & tax resident and provide a valid SSN, the broker will issue you a Form 1099-R for the distribution. U.S. citizens living overseas does not change their U.S. tax residency.
I did not fill out a W-9 form. Did that matter?
Hi I am a small youtube creator living in Italy. I have received 1042-S Form from the USA. I think it's because I didn't fill in my W-8BEN form on Adsense account Form incorrectly not asking for the tax treaty being eligible here in Italy. I have now fixed the problem and should be OK for next but what should I do with 1042-S Form that has arrived this year as I'm living in Italy and have no earning to declare in the USA From youtube Channel.
On the 1042-S Form I have net income "0"
Or do I need to file a form 8833 and claim for tax treaty for Italy telling them I made a mistake or can I just do nothing as I have nothing to declare? Thanks any help would be greatly appreciated 🙏
If you had the incorrect amount of withholding taxes because you failed to claim treaty benefits, you can update your Form W-8BEN with AdSense and potentially file a Form 1040-NR to correct the issue. I just posted a follow up video that discusses some of these issues: ua-cam.com/video/ccpWvqHSzbE/v-deo.html
Hi Jason, I took a loan from 401k from my 401k funds as hardship approval. I work outside US for last 3 years. They withhold 30% of tax. I want to file tax. Will I get any refund. I am from India for tax treaty information.
You might be entitled to a refund, but you'll need to file a Form 1040-NR to submit the claim, if eligible.
@@JasonDKnott how can I know I’m eligible or not for 1042S? As my resident in Cambodia.
I’m just use TD Ameritrade about 1 year. It’s new for me.
@@JasonDKnott Thanks for your response. I am trying to file 1040-NR and my agent says that I will not get any refund as 30% is already withhold. DO I need to specify anything to him?
Is this for UA-cam
It is possible to receive a Form 1042-S if you are a non-U.S. person. I recently posted a video covering this issue: ua-cam.com/video/NLGFIxa1Ypw/v-deo.html
I have Google address on 12… it is normal?
Yes, Google is the withholding agent that prepares and files the Form 1042-S. So, the Google name, address, and other information, would be listed in 12(a) through 12(i).
@@JasonDKnott I gust don’t get, should I do any action or it is just information for me.
i still dont understand what is this
If you received a Form 1042-S, it means you were paid U.S. source income during the year that was subject to U.S. federal withholding taxes.
@@JasonDKnott i dont record for youtube anymore do i have to do something about it?
Just wasted my time and a total stupid video. You should made video how to add it in the tax return, not explaining why it needs to be added. Every one know it needs to be added in the tax return but we need to see where we can fit it.