Introducing IRS Tax Form 1042-S – See How To Handle

Form 1042-S

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.

Our goal at Tax Samaritan is to provide the best counsel, advocacy and personal service for our clients. We are not only tax preparation and representation experts, but strive to become valued business partners. Tax Samaritan is committed to understanding our client’s unique needs; every tax situation is different and requires a personal approach in providing realistic and effective solutions.
If you would like a quote, please click on the button below for a free, no obligation Tax Preparation quote and/or free 30-minute consultation to discuss your situation regarding reporting your Form 1042-S further:

Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.

When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).

Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.

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