Forms 1042 <1012-S and 1042-T are the United States Internal Revenue Tax Service form relating to payments to foreigners, including non- alien resident, foreign partnership, foreign company, foreign plantation, and foreign trust.
Any collecting or intermediary agent, whether US or foreign, with any control, receipt, custody, disposal or payment from a fixed or fixed US fixed source of income, annual or periodic of a foreigner, must file this form with the IRS. For example, employers employing non-foreign residents (such as foreign workers or foreign students) need to file a Form 1042-S with the IRS for each non-resident foreigner they employ and also send copies of the form to non-resident aliens they hire.
Forms 1042 and 1042-S are filed separately. The main difference between the forms 1042 and 1042-S is that the 1042-S form deals with payments made to foreigners, while the 1042 form deals with determining how much income is to be deducted for tax-deductible purposes. Also, Form 1042-S shall always be filed together with Form 1042-T, but Form 1042 may be filed by itself.
Video Form 1042
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Forms 1042, 1042-S and 1042-T will be filed two and a half months after the end of the tax year (ie on March 15 for taxable years ending in December) in which reported income is paid. If the due date falls on a Saturday, Sunday, or an official holiday, the due date is the next business day. This form should be addressed to the Ogden Service Center, P.O. BOX 409101, Ogden, UT 84409.
Penalty
If Form 1042 and/or Form 1042-S is filed late, or taxes are not paid or paid when due, archivists may be fined, unless they indicate that failure to file or pay is due to a reasonable and unintentionally negligible reason.
Maps Form 1042
Form 1042
Form 1042, also "Cutting Income Tax Return for US Foreign Income", is used to report tax withheld on certain foreigners' earnings.
Employers only need to submit Form 1042 to the IRS, not to their employees. Form 1042 does not have to be accompanied by Form 1042-T.
Form 1042-S
The Form 1042-S, as well as "Income Statement of Foreign Personnel US Associated with Withholding", is used to report any payments made to a stranger.
Non-resident foreign employees receive the full version of this form from their withholding agent if they have it. For example, a postdoctoral student from a foreign country receiving a salary from an American university will receive a Form 1042-S from the university, but if the person accepts payment in return for the work performed (such as teaching assignments), this will be reported on Form W- 2. It is possible for the same person to accept both forms in the given calendar year if the person's income comes from both sources.
Note that a separate 1042-S Form must be submitted for each type of income paid to the same recipient.
If the employer needs to submit 250 or more of Form 1042-S, then any Form 1042-S must be filed electronically with the IRS (although paper copies may still be granted to workers).
Cutting
Payment of 1042-S form is subject to withholding. The rate of deduction is:
- 14% if the payee is in F, J, M or Q status and has a valid Taxpayer Identification Number,
- 30% otherwise.
Comparison with Form 1099 and 1099-MISC
Form 1099 is one of several IRS tax forms that are used to prepare and file a return information to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). The Form 1099-MISC is a variant of Form 1099 which is used to report other earnings. As a general rule, if the person receiving the withholdable payment is a non-resident alien, Form 1099 and 1099-MISC should not be used, and a 1042-S Form should instead be used.
One of the uses of Form 1099 is to report a gross lease on the property. However, for example, if the property manager manages the property owned by a non-resident alien, the manager must issue a non-resident foreigner of Form 1042-S, not Form 1099.
The general use of the Form 1099-MISC is to report the amount a business pays to an independent, non-US corporate contractor for the service. If an independent contractor is a non-resident foreigner, then the business must use Form 1042-S.
It is important to note that Form 1042 is not just an analogous non-resident payee of Form 1099. There are some important differences:
- Forms 1099 and 1099-MISC usually do not require deductions, except in cases where the payee does not provide a correct Taxpayer Identification Number (TIN), the payee has been reported for underpayments, or there has been a payment certification failure. Instead, Form 1042-S is accompanied by withholding tax.
- The various Forms 1099 has a reporting threshold (for example, Form 1099-MISC only needs to be filed if $ 600 or more is being paid). However, Form 1042-S must be submitted for any payment.
- There is a context in which there is no 1099 Form (or any other form) that needs to be submitted for the payee, but Form 1042-S must be submitted for non-resident recipients. This includes scholarship revenues, as well as payments for personal services (ie payments for services that are outside contractor-business agreements, such as payments for domestic help).
Comparison with Form W-2
Form W-2 is issued for work performed as an employee for all US citizens and residents and issued to foreign employees not included in the tax treaty, or whose income exceeds the maximum tax agreement. Form 1042-S is not just used for
Form 1042-T
The Form 1042-T, also "Annual Summary and Delivery of Form 1042-S", is used to send Form 1042-S to the Internal Revenue Service. Form 1042-T is just a 1-page summary of Form 1042-S. This form (together with Form 1042-S) is only sent to the IRS, not for non-resident aliens. A separate 1042-T form must accompany each type of Form 1042-S, but some Form 1042-S (corresponding to more than one payee) can be grouped in one Form 1042-T.
External links
- Form 1042
- Instructions for Form 1042
- Form 1042-S
- Instructions for Form 1042-S
- Form 1042-T
See also
- IRS tax form
- Taxation in the United States
References
Source of the article : Wikipedia
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