Filing 1042-S Form – A Comprehensive Guide

Filing 1042-S Form – A Comprehensive Guide

📅 January 14, 2025
⏱️ 6-minute read

🧭 Quick overview

If you worked or studied in the U.S. with a J-1 visa, chances are you received a Form 1042-S at the end of the year.
It’s one of the most important tax documents for international students and nonresident workers — and understanding it is key to filing your taxes correctly.

Let’s break it down so you can feel confident this tax season. 💪

📄 What is Form 1042-S?

Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) reports U.S. income paid to nonresident aliens, such as:

  • Wages, stipends, or compensation 💼

  • Scholarships and fellowships 🎓

  • Royalties, rents, or investment income 💰

In simple terms:
👉 If you’re not a U.S. citizen or resident, and you received U.S.-sourced income that was taxed (or exempt under a treaty), it should appear on a 1042-S.

🧑‍🎓 Who receives Form 1042-S?

You’ll likely receive this form if you were in the U.S. under:

  • A J-1 visa (students, trainees, camp counselors, teachers, au pairs)

  • An F-1, M-1, or Q visa and received taxable income

Your employer, university, or sponsor is responsible for issuing this form. They also send a copy to the IRS to report how much you earned and how much tax was withheld.

💡 Tip: Keep your 1042-S safe! You’ll need it when filing your Form 1040-NR (nonresident tax return).

🧾 What income is reported on the 1042-S?

The form covers U.S.-source income for nonresidents, such as:

✅ Reported income:

  • Scholarships and grants (if taxable)

  • Teaching or research stipends

  • Royalties or performance earnings

  • Dividends or interest from U.S. investments

❌ Not reported:

  • Tuition waivers for degree candidates

  • Payments for goods or materials

  • Income earned outside the U.S.

Each income type has a unique “Income Code”, such as:

  • 16 → Scholarships/Fellowships

  • 20 → Compensation for teaching or research

  • 42 → Earnings as an artist or athlete

⏰ When is the 1042-S issued?

Your 1042-S should be ready by March 15 of the year after you earned the income.

Example:
If you worked in 2024, you’ll receive your 1042-S by March 15, 2025.

You’ll also use this form to prepare your 1040-NR tax return before April 15, 2025.

💡 What if I have more than one 1042-S?

You might receive multiple 1042-S forms if:

  • You had different types of income (e.g., stipend + wages)

  • You worked for more than one employer

  • You received income under a tax treaty (some portions taxed, others exempt)

Each form will have a unique 10-digit identifier, so don’t mix them up when filing!

💰 What does each box mean?

Here’s a quick look at the key boxes you’ll see:

  • Box 1 → Income code (type of income)

  • Box 2 → Gross income amount

  • Box 3a–b → Tax rate and exemption code (if any)

  • Box 7 → Federal tax withheld

  • Box 10 → Total U.S. tax withheld

  • Box 13a–k → Details about the recipient (you)

  • Box 14–15 → Details about the withholding agent (your employer or university)

Understanding these helps you verify that your income and taxes withheld are correct before you file.

⚠️ Common mistakes to avoid

❌ Ignoring your 1042-S — it must be included when filing your 1040-NR.
❌ Confusing W-2 and 1042-S — you might have both! Use both forms if you earned from different sources.
❌ Filing as a resident — J-1 holders are nonresidents for tax purposes unless they pass the Substantial Presence Test.
❌ Forgetting tax treaty benefits — you could pay less tax or even be exempt!

📬 Didn’t receive your 1042-S?

If it’s after March 15 and you haven’t received your form:
1️⃣ Contact your employer or sponsor.
2️⃣ Check your email or online payroll portal.
3️⃣ Request a reissue if it was sent to an old address.

You can’t file your taxes correctly without it, so make sure you get your copy.

✅ Key takeaway

The Form 1042-S is your roadmap for reporting income as a nonresident in the U.S.
It shows what you earned, how much tax was withheld, and whether a treaty applies.

Keep it safe, double-check it for accuracy, and use it to file your Form 1040-NR by April 15 to stay compliant and maximize your refund. 💵