What types of income are reported on Form 1042-S?
Form 1042-S reports taxable federal income and the corresponding federal tax withholding relating to the following types of income received by U.S. nonresidents:
- Wage payments made to employees who have claimed tax treaty benefits
- Tax reportable Fellowship/Scholarship income
- Service payments made to independent contractors for work performed in the U.S.
- Royalty payments issued to individuals or entities.
- Non-employee Prize or Award payments
From the 1042-S Form
"Generally, every nonresident alien individual, nonresident alien fiduciary, and foreign corporation with United States income, including income that is effectively connected with the conduct of a trade or business in the United States, must file a United States income tax return.
However, no return is required to be filed by a nonresident alien individual, nonresident alien fiduciary, or foreign corporation if such person was not engaged in a trade or business in the United States at any time during the tax year and if the tax liability of such person was fully satisfied by the withholding of United States tax at the source. Corporations file Form 1120-F; all others file Form 1040NR (or Form 1040NR-EZ if eligible). You may get the return forms and instructions at any United States Embassy or consulate or by writing to: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613"
Are you Canadian?
We found a few helpful articles about what a Canadian taxpayer might have to do with the 1042-S form they received.