Form 1042-S

What is Form 1042-S?

Form 1042-S, officially titled Foreign Person’s U.S. Source Income Subject to Withholding, is used to report amounts paid to non-resident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts that are subject to income tax withholding.

Why Form 1042-S Matters

Employers and other withholding agents must file Form 1042-S for each recipient who received US-source income during the tax year. Common types of reported income include wages, scholarships, dividends, and royalties. The form must be furnished to the recipient and filed with the IRS annually, and it plays a key role in ensuring compliance with US tax treaty obligations and withholding requirements for foreign workers.