Question

Correct way of reporting 1042s form (federal tax withheld: income code 16) on Turbotax?

Forum|Forum|7 years ago
June 1, 2019
2 replies
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Hi

I am a resident alien and received both W2 and 1042s (code16: scholarship and fellowship) from school. On 1042s, '3a. exemption code is 00, 3b. tax rate is 14.00, 4a. exemption code is 16, and 4b. tax rate is 00.00'. After searching for several Q&A here and on the web, I am still confused about the way I should report my refund on Turbotax.

On the 1042s form, I have two income information- gross income and federal tax withheld. My question is which one I should report.

1) When I focus on gross income on 1042s (again, this is scholarship from the school), I can report it on 'Wages and Income/Less common income/MISC income/Other income not already reported on a Form W-2 or Form 1099'.

2) Instead, I focus on the amount of 'federal tax withheld' on the form and report it using 'Deductions and credits/Other income taxes/Yes/Other income taxes paid in 2017/Withholding not already entered on a W2 or 1099' option.

3) I do both (1) and (2) simultaneously and the refund is the smallest in this case. I don't understand why...

I am not sure which one is correct. I am a sixth-year phd student and no longer non-resident alien (i.e. resident alien as I already mentioned). At the same time, the tax treaty between my origin country and the US is up to five years. That is, I am not eligible. The amount of Federal refund is much higher for (2) than (1). That way, IRS (is expected to) returns the same amount reported in 'federal tax withheld' on 1042s form (i.e. 14% of gross income reported on the form). When I use the (1), however, the refund estimate is much lower and its calculation does not seem to consider the amount of federal tax withheld.

which one do you think is correct? OR should I do both?

Any suggestion or advice would be really helpful!

Thanks!

TurboTax Free Edition iOS

D

DianeW777

1-Turbotax does not support form 1042s directly, but you can enter the income based on the income code.

Because you are a resident alien and you have received a form 1042S where you report the income depends on the income code and why the form was generated. See page 18 for a description of income code.IRS Instructions Form 1042-S.

This income can be entered as miscellaneous income. When you sign into your TurboTax account you can follow the steps below.

Select the "Federal" tab in the black navigation bar on the left
Select "Income & Expenses"
Select "Add more income" button if necessary
Scroll and click "See the list of all income"
Scroll to "Less Common Income" and select "show more"
Select "Miscellaneous Income"
Scroll and select "Other Reportable Income"
Click "yes" then enter the description and amount (this will show up on line 21, Form 1040)

2-The entry steps you have in your question is correct. Enter the federal and/or state withholding here:

Deductions and credits/Other income taxes/Yes/Other income taxes paid in 2017/Withholding not already entered on a W2 or 1099

3-The results should be correct following the steps above.

You should file your return by mail so that you can attach your Form 1042-S to the return.

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I

inkwan82Author

Thanks for the answer 🙂 I have another question! Other comments on the similar question recommend 'Other income not already reported on a Form W-2 or Form 1099' instead of 'Ohter reportable income'. Two different options don't make any difference in estimated refund. Do you think they are different substantively?(meaning that one is correct and the other is wrong and may cause a problem in the filing process). Thanks!

Z

zqw1103

So I filed already before I received this form. Can I file again by including this? Or I can file next year by including this info? Since I already got refunds, if adding this it will be much less.

E

EbonyA

@the11 way to report any missing information after you have filed, is via an amended tax return. The following FAQ provides those general steps: Amending a return in Turbo Tax.

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