Guide: Form 1042-S Filing Instructions for 2024 Tax Year

Form 1042-S requires detailed reporting of US-sourced income, withholding amounts, and recipient information. A filer must complete both pages and sign the form to successfully submit it to the IRS.

Form 1042-S Filing Instructions

Form 1042-S must be filed with the IRS, and a copy should also be sent to the business, student, entity, or employee payee to complete their U.S. federal tax return. It’s the responsibility of the withholding agent to complete the form. The withholding agent could be:

• Employer
• Business
• University
• Other institution

Form 1042-S should be filed regardless of whether (or not) tax is withheld.

Information Required to File 1042-S form

• Payer Information: Name, address, EIN (Employer Identification Number).
• Recipient Information: Name, address, country of residence, TIN (if applicable).
• Income Information: Type of income, amount paid, and withholding amount.
• Withholding Agent Information: Details of the entity responsible for withholding tax.

Each Box on Form 1042-S

• Box 1: Income Code
• Box 2: Gross Income
• Box 3: Chapter Indicator
• Box 4: Exemption Code
• Box 7a: U.S. Federal Tax Withheld
• Box 12a: Recipient’s Country Code
• Boxes 13–20: Payer and Recipient Details

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Detailed Box-by-Box 1042-S Filing Instructions

Payer and Withholding Agent Information

Box 1: Income Code
Enter the correct income code that best describes the type of income paid. Example: 06 for dividends, 15 for scholarships.

Box 2: Gross Income
Report total income before withholding. Use U.S. dollars with decimals (e.g., 1000.00).

Box 3: Chapter Indicator
Enter 3 (Chapter 3 withholding) or 4 (Chapter 4 withholding – FATCA).

Box 4: Exemption Code
Enter the appropriate exemption code if applicable, e.g., 04 for tax-exempt organizations. Leave blank if none.

Box 5: Withholding Rate
Enter the percentage of tax withheld, e.g., 30.00 or 15.00.

Box 6: Net Income
Gross income (Box 2) minus tax withheld (Box 7a).

Box 7a: U.S. Federal Tax Withheld
Report the total federal tax withheld. Enter 0.00 if none.

Box 7b: Withholding by Other Agents
If applicable, report the amount withheld by another agent.

Recipient’s Information

Box 8: Taxpayer Identification Number (TIN)
Enter the recipient’s U.S. TIN or “N/A” if not applicable.

Box 9: Foreign TIN
Enter the foreign TIN if available.

Box 10: Recipient’s Name
Enter full legal name of the individual or entity.

Box 11: Street Address
Enter complete street address. Avoid abbreviations.

Box 12a: City or Town
City or town of recipient’s residence.

Box 12b: State/Province/Region
Enter state or province if applicable.

Box 12c: Country Code
Use the two-letter IRS country code.

Box 13: Postal Code
Enter the postal or ZIP code.

Payer and Withholding Agent Details

Box 14a: Payer’s Name
Full legal name of the paying entity.

Box 14b: Payer’s U.S. TIN
Enter the U.S. TIN (usually EIN).

Box 14c: Payer’s GIIN
Enter the GIIN if payer is an FFI under FATCA.

Box 15: Street Address
Complete street address of the payer.

Box 16: City or Town
City or town where payer is located.

Box 17: State or Province
State/province if applicable.

Box 18: Country Code
Two-letter country code of payer’s country.

Box 19: Postal Code
Enter postal code in the correct format.

Final Thoughts

After completing all required boxes, review the form carefully. Ensure that all names, addresses, TINs, and amounts are accurate.

Tax1099, an IRS-authorized e-file provider, allows you to e-file Form 1042-S with the IRS and receive instant status updates on your returns.

The deadline to File Form 1042-S is March 17, 2025

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