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1042-S Information

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A 1042-S is a year-end federal tax document given to a non-resident alien who:

  1. Received wages exempted from federal and state tax withholding by a tax treaty; and/or
  2. Received a non-qualified taxable scholarship (Any amounts received for incidental expenses or by a non-degree candidate are taxable scholarships. Incidental expenses include room and board, travel, and expenses for equipment and other items that are not required for either enrollment or for attendance, or in a course of instruction).

The 1042-S has an income code, which describes the type of income being reported. In certain cases, you may receive a W-2 in addition to a 1042-S. The form is typically mailed at the same time as the W-2. The 1042S will be postmarked no later than March 15.

Form 1042-S Explained (Foreign Person’s U.S. Source Income Subject to Withholding)

Form 1042-S Explained (Foreign Person’s U.S. Source Income Subject to Withholding)

Box 1:  Income Code – This two-digit income code identifies the appropriate income source:

16 – Scholarship or Fellowship Grants
            17 – Compensation for Independent Personal Services
            20 – Pay for Individuals whose immigration purpose is Studying and Training
            54 – Other Income

Box 2:  Gross Income – Entire Amount of the Payment

Box 3:  Chapter 3– If checked, amounts were reported under chapter 3 of the IRS Code

Box 3a: Exemption Code – Reason for the Exemption Code.

            02 – Exempt under IRS Code
            04 – Exempt under Tax Treaty

Box 3b: Tax Rate – Withholding rate based on type of Income

Box 4:  Chapter 4 – If checked, amounts were reported under chapter 4 of the IRS Code

Box 4a:  Exemption Code – Reason for the Exemption Code

            14 – Effectively connected income
            15 – Payee not subject to chapter 4 withholding

Box 5:  Withholding Allowance – Personal exemption amount, if applicable

Box 6:  Net Income – Generally left blank, unless Box 5 is used.

Box 7: US Federal tax withheld – The total dollar amount of federal income tax withheld from amounts credited to you that were considered income.

Box 9:  Total withholding credit -not applicable to MBU

Box 10 Total Witholding Credit– The total dollar amount of federal income tax withheld and paid to the IRS on your behalf

Box 13b Country code – The country of which the recipient claims residency under that country’s tax laws.

Box 13e Recipient’s U.S. TIN, if any – U.S. taxpayer identification number