1042-S form (income code 16) - Unable to e-file

Forum|Forum|5 years ago
March 17, 2021
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Hello,

I am a resident alien and received a 1042-S (income code 16).

I reported it as a fellowship, and reported the income tax withheld as "Other income taxes paid in 2020". However, I am not able to e-file (I am receiving a message saying that my income tax withholding is greater than my income.

Is this correct? Is there a way to report the fellowship under income so I can e-file?

Thank you!

TurboTax Free Edition Online

Best answer by AmyC

Hi Renee,

Thank you for the help and patience.

I did follow the instructions (reported my fellowship on "Education Section under Deductions & Credits" and the tax withheld under "Estimates and Other Taxes Paid"). Yet, my fellowship did not appear on line 1 of my 1040. I suspect it is because my education expenses were higher than my fellowship.

This is preventing me from being able to e-file. Is there any workaround?

Thank you,

Carolina

You can have it turn into income. You can enter it as other income. Follow these steps:

Log into your return
Federal
Click on Income
Scroll to the bottom section, Less Common Income
Select Miscellaneous income, 1099-A, 1099-C, start
Select Other Income
Did you receive other wages? Yes
Continue
Household employee? Continue
Sick or disability pay? Continue
Any other earned income or wages? Yes
Enter source of Other Earned Income
Select Other
Continue
Enter description SCH
Enter amount, $1 or full amount

If the amount is less than $12,400, you could enter the whole thing since it would not be taxed.

linaj20201

You should be able to e-file.

You will treat Form 1042- S as receiving a scholarship or fellowship to offset your qualified education expenses if there are any. You will enter the amount in box 5 on your Form 1098-T. If you have paid any qualified tuition expenses out of pocket, you would enter information by following the steps below. As IRS receives a copy of your Form 1042-S, you can e-file your tax return. You do not need to submit your Form 1042-S separately.

In TurboTax Online,

After sign into your account and select Pick up where you left off
At the right upper corner, in the search box, type in 1098t and Enter
Select Jump to form 1098T
Follow prompts

If you have paid in any tax withholdings, enter info so you will not be taxed twice. Here are the steps:

At the right upper corner, in the search box, type in estimates paid and Enter
Select Jump to estimates paid
On the screen, "Estimates and Other Income Taxes Paid", select Other Income Taxes Paid / Withholding not already entered on a W-2 or 1099, to enter info

If your scholarship amount exceeds your tuition and other qualified expenses like books and supplies, the difference will be taxable as wages (SCH) on line 1 of your Form 1040.

Carolina_VAuthor

Dear Lina,

Thanks a lot for your help!

Two follow up questions:

The Fellowship reported on my 1042-S is not on my 1098-T. Is it correct to add it to "Other Scholarships/Grants/Fellowships?"
When I tried to e-file, I received the message below (probably because the only income I received in 2020 was from the fellowship, which I was taxed for). Any recommendation on how I should proceed?

"Your Federal Return is not eligible for electronic filing. The tax withheld of $x is greater than or equal to $0, the sum of income from the following sources:
Form 1040, line 1

Form 1040, line 2b

Form 1040, line 3b

Form 1040, line 4b

Form 1040, line 5b

Schedule 1, line 7

Form 1040, line 6a

Schedule 1, line 8

Schedule C, line 1"

Thank you!