Form 1042-S | Meaning and Definition

In most situations, a non-citizen is taxed in the United States on income earned in the United States. The sum which is paid to foreigners (including those considered foreign), corporations are reported on Form 1042-S, Foreign Person’s Source Income based in the US is subject to withholding. The form details sums withheld under various chapters and amounts withheld and later refunded to the payee. Form 1042-S is utilized even if no sum has been taken away from the due of the payment to a treaty or exemption from taxes. 

When addressed to resident aliens, a 1042-S is occasionally given for informative purposes. It is not necessary to mention it on your tax return in this scenario.

Non-residents of the United States who receive money from any source in the United States, including passive sources like interest, should file a 1042-S for each form of income. The 1042-S form is typically used by international students, postdocs at American colleges, professors, trainers, and workers who are non-residents under a taxation agreement.