Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is issued to a nonresident alien individual, nonresident alien fiduciary, or foreign corporation if it has U.S.-sourced income. The form indicates the nature of the income as well as the amount of federal tax withheld.
Individual taxpayers who receive Form 1042-S are typically filing Form 1040-NR, U.S. Nonresident Alien Income Tax Return. To enter Form 1042-S in Form 1040-NR in TaxSlayer ProWeb, from the Federal Section of the return select:
- Payments & Estimates
- Foreign Person's U.S. Source Income Subject to Withholding - Select and enter all the information as needed.
Occasionally a U.S. resident filing Form 1040 will receive Form 1042-S. There is no menu line in the resident return to enter this form, since it's a form intended for nonresident filers, so the preparer will need to examine the form to determine the nature of the income and the best place in the return to enter it. In the resident tax return (Form 1040) in TaxSlayer ProWeb, the federal tax withholdings can be entered here:
- Payments & Estimates
- Other Federal Withholdings - Enter the amount in Other Federal withholding (not from Form 1099).