How to file 1042-S income code 16 (Resident Alien)

Forum|Forum|1 year ago
April 14, 2025
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As an F-1 student classified as a resident alien, I worked last year as both a research and a teaching assistant. My 1098-T form shows that my school included the cost of my health insurance in Box 5 as part of my scholarship/grant. This inclusion made the amount in Box 5 exceed the amount in Box 1 by the cost of the health insurance paid by the school. Initially, I was confused because it appeared I had to pay additional tax on money I never actually received.

However, I recently realized that this additional tax may have already been covered by my school last year through a direct deposit. I received a 1042-S form showing a few hundred dollars in Box 2 (Box 1 income code: 16; Box 3a exemption code: 04; Box 4a exemption code: 16). Should I regard it as a taxable income?

I am unsure how to report this on my 1042-S form in TurboTax given my situation.

DaveF1006

Yes, you need to report both of these in your return. Your health insurance is part of your scholarship income because even though you received no money, you received a benefit in lieu of money, which makes it a taxable event.

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Climate_augAuthor

Hi Dave,

Thank you for your response! I was wondering — how should I import the 1042-S form into TurboTax, given that there doesn’t seem to be an explicit option for it?

I came across a post on this forum discussing the steps to file a 1042-S using TurboTax. Do you think this would apply to my situation (F-1 Resident Alien with income code of 16 in 1042S Box 1)?

Many thanks in advance!