Form 1042-S is used to report income for non-resident aliens and for resident aliens with treaty benefits.
It is sent out by the College around Mid February. The last date the form can be sent out to you and the IRS is March 15. The College first uploads Form 1042-S electronically onto a secure website called Foreign National Information System and then mails Form 1042-S via postal mail to those individuals who did not give consent for electronic posting. The College also submites Forms 1042-S to the IRS electronically through FIRE.
If you receive Form 1042-S, you have to file a U.S. Federal Income tax return and possibly also a State income tax return. For more information on how to file a tax return, see here. Generally, copy B needs to be attached to your federal tax return, copy C to your state tax return and copy D is your copy to keep for your records.
The following income types are generally reported by the College / Institute (for more information on the types of payments see the Payment section of this website):
For Non-Resident Aliens:
- Non-qualified scholarship using income code 15 with exemption code 04 when treaty benefits apply, with exemption code 00 when no treaty benefits apply. If no treaty benefits, the tax rate will be 14% or 30%;
- Honorarium / Self-Employment Income using income code 15 with exemption code 04 when treaty benefits apply, with exemption code 00 when no treaty benefits apply. If no treaty benefits, the tax rate will be 30%;
- Wage income with treaty benefits using income code 17, 18, or 19 and exemption code 04;
- Performance fees using income code 20 with exemption code 04 when treaty benefits apply, with exemption code 00 when no treaty benefits apply. If no treaty benefits, the tax rate will be 30%;
- Prizes using income code 50 with exemption code 04 when treaty benefits apply, with exemption code 00 when no treaty benefits apply. If no treaty benefits, the tax rate will be 30%;
- Royalities using income code 12 with exemption code 04 when treaty benefits apply, with exemption code 00 when no treaty benefits apply. If no treaty benefits, the tax rate will be 30%. NOTE: Royalities are being taxed even if the receiver of the royalties never set foot on the U.S. as in this case what matters is not the location of the recipient but the location of the use of the right.
For Resident Aliens for Tax Purposes with Treaty Benefits:
- Non-qualified scholarship using income code 15 with exemption code 04 for treaty benefits.
- Wage income with treaty benefits using income code 17, 18, or 19 and exemption code 04.
Last Updated April 232, 2009