Form 1042-S is a tax form used to report income paid to non-resident aliens that’s subject to U.S. tax withholding. The IRS calls it the Foreign Person’s U.S. Source Income Subject to Withholding form.

It’s issued by withholding agents—like employers, universities, or financial institutions—to report payments such as wages, scholarships, grants, and investment income. Both the payer and the recipient need to report this income correctly to stay compliant with U.S. tax laws.

Why does Form 1042-S matter?

For non-resident aliens, this form helps determine tax liability and eligibility for deductions, exemptions, or tax treaty benefits. It’s also proof of income when filing tax returns in the U.S. or abroad.

For payers, it ensures proper reporting of payments made to non-resident aliens. Filing incorrectly—or not filing at all—can lead to IRS penalties and legal trouble.

Form 1042-S vs. Form 1099: What’s the difference?

Both forms report taxable income, but they apply to different groups and have different withholding rules.

FeatureForm 1042-SForm 1099
Who Gets It?Foreign persons (non-resident aliens, foreign entities) subject to U.S. tax withholdingU.S. persons and entities
Types of IncomeWages, scholarships, grants, dividends, interest, and other payments to foreign personsInterest, dividends, rental income, royalties, capital gains, and more for U.S. persons
Withholding?Yes, required for most payments to foreign personsUsually not required, except in cases of backup withholding
Who Files It?Withholding agents (employers, financial institutions)Businesses, banks, government agencies

How to file Form 1042-S

You can file Form 1042-S electronically through the FIRE (Filing Information Returns Electronically) system. If you’re submitting more than 250 forms, e-filing is mandatory. Otherwise, you can file on paper.

  1. Download Form 1042-S from the IRS website or request a copy from the IRS.
  2. Gather the required details: names, addresses, and amounts paid.
  3. Fill out the form carefully, following IRS instructions.
  4. Double-check everything to avoid mistakes.
  5. Submit the form to the IRS by the deadline.
  6. Send copies to the recipients.
  7. Keep copies for your records.

Deadline: Form 1042-S is due March 15 following the tax year in which payments were made. Late filing can result in penalties and interest charges.

Where to get Form 1042-S

You can obtain Form 1042-S from:

  • The IRS Website: Download the form at IRS.gov.
  • Tax Software: Some tax software includes Form 1042-S for e-filing.
  • Tax Professionals: Accountants and tax preparers can provide and help file the form.
  • IRS Offices: Visit a Taxpayer Assistance Center to pick up a copy.
  • By Mail: Call the IRS at 1-800-829-3676 to request a mailed copy.

If you’re a non-resident alien and haven’t received your Form 1042-S, check with your payer. If you still don’t have it by March 15, you may need to request an extension from the IRS.

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