What Is Form 1042-S and When Do Expats Receive One?

Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) is the tax statement sent to nonresident aliens who received U.S.-source income with tax withheld during the year. It is the NRA equivalent of a 1099: it reports the income type, gross amount, withholding rate, and tax withheld. You receive Form 1042-S from U.S. payers such as brokerages, banks, employers, and pension administrators (IRS: About Form 1042-S).

• Who receives it: nonresident aliens, former U.S. citizens (post-renunciation), and foreign entities with U.S.-source income
• Who sends it: the U.S. withholding agent (broker, bank, employer, pension plan)
• When it arrives: by March 15 of the year following the income
• What it replaces: Form 1099-DIV, 1099-INT, 1099-R, and 1099-NEC for NRA recipients

When expats encounter Form 1042-S:

• After renouncing citizenship, your U.S. brokerage switches from issuing 1099s to 1042-S for dividends, interest, and retirement distributions
• NRA spouse with U.S. investments: if your nonresident alien spouse holds U.S. stocks or receives U.S. pension distributions
• NRA with U.S. rental income: if a property manager withholds on rental payments to a foreign landlord
• F-1/J-1 visa holders: may receive 1042-S for scholarship or fellowship income

How to use Form 1042-S:

• File Form 1040-NR and report the income on the appropriate line
• Claim the withholding as a credit on Form 1040-NR (line 25d) to offset your tax or get a refund if over-withheld
• Treaty rate verification: Confirm the withholding rate matches the treaty rate you claimed on Form W-8BEN

For more on NRA taxation, see our Taxation of Nonresident Aliens guide.