Form 1042 (2023)

What Is Form 1042?

The IRS 1042 form is also known as the Annual Withholding Tax Return for US Source Income of Foreign Persons. The document is widely used by foreigners who work in the US or have business with US partners. It was created by the International Revenue Service to report taxes that the person pays during the year to the US. No matter whether you are a foreigner who works in the US or an employer of a foreigner you still have to send reports to the IRS. 

However, if you are an employer you need to use the 1042-S form. The main idea behind the form is to find out how much money is withheld for US tax withholding purposes based on the earned income.

PDFLiner offers you quick access to tax form 1042. You can easily open it and fill it online. You may attach other forms you need with it, yet, keep in mind that the 1042-S and 1042 forms must be sent separately.

What Do I Need the Form 1042 For?

• The IRS form 1042 is used to report the income received by foreigners, including corporations, partnerships, nonresident aliens, foreign trusts, and estates. It must be filed by every foreigner who has the income from a US source, whether it is one-time receipt, custody, payment of the fixed or changing amount of money;
• You can use the form to make records of the payments that were withheld in dividend equivalent payments;
• The 1042 form tax also confirms the information you have mentioned in the 1042-S form in the chapter 3 and 4;
• The IRS requires this form from the taxpayer to record the amount of money that must be withheld during the taxation period.

How to Fill Out Form 1042?

Now that you know what is 1042 form, you can begin to fill it out. The document is 2 pages long and has to be filled with correct numbers. You can use your tax reports to do this. You can find form 1042 instructions separately from this form. PDFLiner offers you quick access to the template and the ability to fill it out online once you open it, using the editing tools.

Once you fill out the form online, you can send it to the IRS's official website or their email or print it and send it by regular mail. You can also download the form on your device and keep it there. Here is what you need to include in the 1042 tax form:

1. Name the withholding agent and the ID number of the employer;
2. Confirm the status code;
3. Write down your address, including the street, city, and ZIP;
4. Fill section 1 with the federal tax liability in form 1042 IRS by months;
5. Name the third-party designee if you want to allow such rights to another person;
6. Put your signature and date;
7. Include your tax due or the overpayment;
8. Provide information on the reconciliation of payments of the US Source FDAP Income in Section 2;
9. Include the information about the potential transaction from section 871. You have to check out instructions on how to do it in the first place;
10. Provide information on the dividend equivalent payments by a Qualified Derivatives Dealer in section 4 if you need it.

Organizations That Work With Form 1042

• Department of the Treasury Internal Revenue Service.