Form 1042-S

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, 2019.  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 submits 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:

  1. 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%;
  2. 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%;
  3. Wage income with treaty benefits using income code 17, 18, or 19 and exemption code 04;
  4. 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%;
  5. 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%;
  6. Royalties 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: Royalties 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:

  1. Non-qualified scholarship using income code 15 with exemption code 04 for treaty benefits.
  2. Wage income with treaty benefits using income code 17, 18, or 19 and exemption code 04.

Last Updated February 22, 2019

Tax Forms Provided by the College/Institute

The Canadian tax form TL11a must be requested from the Tax Office by January 31st of each year. These forms are prepared by hand and take time to complete. 

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Common U.S. tax form:

What do they show, what are they used for, where you can get them:

Form W-2
Form 1042-S
Form 1099MISC
Form 8843
Form 1098-T

Form W-2

Form W-2 is used to report wage income received in a given calendar year. It is made available through BannerWeb by January 31 of the following year to all current and former employees. It is available online and is mailed via U.S. Postal Service to those who did not consent to electronic delivery. A copy of Form W-2 needs to be attached to any tax return filed on paper. W-2 information is also submitted to the Internal Revenue Service electronically.

Receiving Form W-2 generally means that a U.S. Federal Income tax return, and depending on the state where the work was performed, a state income tax return needs to be filed. 

The following income types are reported by the College/Institute:

  • Box 1: Wages, tips, taxable fringe benefits, unsubstantiated business expense reimbursements, group-term life insurance over $50,000, non-qualified moving expense reimbursements, prizes and awards paid to employees, and other income subject to federal income tax
  • Box 2: Federal income tax withheld
  • Box 3 and 5: Wages, tips (only for box 5), taxable fringe benefits, unsubstantiated business expense reimbursements, group-term life insurance over $50,000, non-qualified moving expense reimbursements, prizes and awards paid to employees, etc., which are subject to Social Security and Medicare tax.
  • Box 4: Social security tax withheld
  • Box 6: Medicare tax withheld
  • Box 7: Social security tips
  • Box 10: Dependent care benefits (maximum $5,000)
  • Box 12 Code C: Taxable cost of coverage of group-term life insurance over $50,000
  • Box 12 Code E: Elective deferrals under a section 403(b) salary reduction agreement
  • Box 14 RECR: Taxable cost of coverage of ski pass or golf membership (taxable fringe benefit included in boxes 1, 3, and 5)
  • Box 14 RET: Required employee contributions to pension plan
  • Box 16: Wages, tips, taxable fringe benefits, unsubstantiated business expense reimbursements, non-qualified moving expense reimbursements, group-term life insurance over $50,000, prizes and awards paid to employees, etc., which are subject to State income tax
  • Note: Box 3 + Box 7 = no more than a maximum amount, set every year by the Social Security Administration.

 

Form 1042-S

Form 1042-S is used to report all types of income for non-resident aliens and for resident aliens claiming treaty benefits. The form is for scholarship recipients, fellows, those receiving an honorarium, performers, lecuturers and others. 

It is made available by the college by March 15, 2019. The forms can be found through the FNIS system and will be mailed to individuals who did not consent to electronic delivery. This information is also submitted to the Internal Revenue Service. 

If you receive Form 1042-S, you should file a U.S. Federal Income tax return and possibly also a State income tax return.

Form 1099MISC

  • Rent (Box 1)
  • Royalty payments (Box 2)
  • Prizes and awards that are not for services, such as graduation prizes, winnings on Vegas nights, or winnings on TV or radio shows (Box 3)
  • Payments for services performed for a trade or business by people not treated as employees, e.g., fees to subcontractors or directors (and reimbursements if no original receipts were attached with the payment request) (Box 7)
  • If an employee dies during the year, the accrued wages, vacation pay, and other compensation paid after the date of death (Box 7)
  • It also reports any federal income tax withheld (Box 4) if any. For example, persons who have not furnished their TIN are subject to withholding at a 28% rate on payments required to be reported in boxes 1, 2 (net of severance taxes), 3, 5 (to the extent paid in cash), 6, 7 (except fish purchases for cash), 8, 10, and 14.

Cumulative payments of $10 and more in royalties or $600 and more for all other types of income for the calendar year are reported on Form 1099MISC. In addition, any federal income tax withheld is reported.

All income even if lower than $600 and thus not reported on Form 1099MISC needs to be reported on your federal and state income tax return.

Form 1099MISC is not sent to tax-exempt organizations, the United States government or its agencies, a state, the District of Columbia, a U.S. possession, or a foreign government. The same is true for most payments to corporations.

Prizes and awards given to employees based on their performance at work are reported on Form W-2.

Form 8843 

Form 8843 needs to be submitted to the Internal Revenue Service by every person who has been in the U.S. on a J, F, M, or Q visa in the past year. This includes dependents. 

Form 8843 is submitted with a tax return (Form 1040NR or 1040NR-EZ) and does not need to be signed. If the person does not submit a tax return or is a dependent of a primary visa holder, they must submit Form 8843 and the form needs to be signed by the individual visa holders and mailed individually directly to:
 
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
by April 15.

If the child cannot sign his or her return, a parent or guardian can sign the child's name in the space provided at the bottom of the tax return. Then, he or she should add: “By (signature), parent (or guardian) for minor child.”