What is Form 1042-S?
Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is the IRS form that reports amounts paid to non-citizens who are subject to income tax withholding. The 1042-S form needs to be provided even if no amount is required to be withheld from the payment. Some income types paid to a Foreign Person that need to be reported on Form 1042-S:
- Types of interest payments
- Dividends paid by U.S. corporations
- Income for services performed in U.S.
- Pension income
- Gambling winnings
- Board of directors’ payments