Form 1042-S
Foreign Person's U.S. Source Income Subject to Withholding
Foreign Person’s U.S. Source Income Subject to Withholding
Form 1042-S, “Foreign Person’s U.S. Source Income Subject to Withholding,” is a tax form used to report certain types of income paid to foreign persons (non-U.S. residents) that are subject to withholding, even if no amount is deducted and withheld from the payment due to a treaty or exception to taxation, or if any amount withheld was repaid to the payee. The form provides details about the type of income, the related tax withheld, and any applicable treaty information. The payer (or withholding agent) is responsible for completing the form and sending copies to both the IRS and the income recipient. The recipient then uses this information to complete their U.S. tax return if they are required to file one.
Per the IRS, use Form 1042-S to report:
- Income and amounts withheld as described in the Instructions for Form 1042-S.
- Specified federal procurement payments paid to foreign persons who are subject to withholding under Section 5000C.
- Distributions of effectively connected income by a publicly traded partnership or nominee.