IRS Form 1042-S
Companies and organizations use Form 1042-S to report income that they have paid to foreign workers. It is also used to report how much money was withheld for taxes. This form is similar to the W-2 that is provided to residents of the United States that are employed. The 1042-S form from the IRS lets the foreign worker be certain that their income was provided to the Internal Revenue Service and that they are thus required to fill out and file a return.
What Types of Payments Are Reported On The Form 1042-S?
There are a number of payments that have to be reported on the form 1042-S. It is not only used for reporting income or a salary that is paid to a foreign worker. According to the IRS, other payments that must be reported on the 1042-S including royalties, rents, cancellation of debt, deposits, winnings from gambling and payments for services.
What Should Nonresidents Do If They Receive a 1042-S?
Similar to a W-2 for U.S. workers, the 1042-S lets nonresidents know the amount of money they received for the year from a corporation or entity that they worked for and the amount of money was taken out for taxes. Anyone that receives a 1042-S is required to file a tax return. An individual may qualify for exemptions or deductions based on their tax return. It is important to consult a professional for tax assistance if you receive this form.
For assistance with tax Form 1042-S or any other questions, please feel to contact Tax Samaritan.
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