1042-S received

[cpabsd]

Client lives in Thailand but is a US citizen.  He receives SS income and a small retirement from HP.  HP reported the income on a 1042-S.  They have his SSN but still withheld at the 30% rate.  Where does this income get reported?  

[Lion EA]

Was it his pension?  I think on the usual line for pension and usual line for withholding.

 

A long time ago, I had a US citizen who'd been overseas for a few years but was back in the states.  He received a 1042-S for investment income.  We reported it as usual.  But, I had him deal with the brokerage to get future years reported on his consolidated 1099.

 

That's really not the right reporting form, but few companies would change their 2013 reporting after the fact.  Hopefully, it's early enough for your client to deal with 2014 reporting.  And, to have the withholding stopped.

[Margaret CPA in OH]

I have a German professor who received a 1042-S with a code 18, compensation for teaching. See what the code says in Box 1 and look online to check it. There are many types of income reported on 1042-S including some interest and certain pensions, annuities, etc. In my client's situation, this amount was not subject to income taxation due to treaty as it was received from Germany. Another amount was received from the university and was taxable and reported on W-2.

I think the code determines where you report it. In this case, I included it as fellowship grant not reported on W-2 then back it out on Line 21 explaining Treaty Exempt Reported on Form 1042-S. I would think that the tax withheld would then be overpaid and refunded.