Form 1042 – Fill Out and Use This PDF

The Form 1042 is an Annual Withholding Tax Return that plays a critical role in the reporting of U.S. source income paid to foreign persons. It requires thorough documentation from withholding agents, including amounts paid, taxes withheld, and the tax liability for each reporting period within the calendar year. Ensuring accurate and timely filing of Form 1042 is essential for compliance with the Internal Revenue Service (IRS) requirements. Click the button below to get started on filling out your Form 1042.

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Form 1042 PDF Details

The annual task of managing and reporting U.S. source income for foreign entities or individuals is captured within the Form 1042, "Annual Withholding Tax Return for U.S. Source Income of Foreign Persons." This document, vital for the Department of the Treasury and overseen by the Internal Revenue Service (IRS), outlines the obligations for withholding agents who are responsible for distributing U.S. sourced income to foreign parties. Its comprehensive layout includes the requirement to report amounts withheld or paid, thereby ensuring compliance with U.S. tax laws concerning foreign persons. Furthermore, the form includes provisions for declaring whether the filing is an original or amended return, details on the withholding agent, a meticulous record of federal tax liability, and sections dedicated to the reconciliation of payments and potential Section 871(m) transactions. Not only does it facilitate the accurate reporting of gross amounts from various sources, including Fixed, Determinable, Annual, or Periodical (FDAP) income and potentially applicable excise taxes, but it also allows for a detailed account of tax withheld by other agents, adjustments to withholding, and the declaration of tax overpayments. By incorporating areas for third-party designees and preparer information, along with sanctions for perjury for misleading filings, the form enforces rigor and transparency in international tax dealings, underscoring the critical role it plays in the landscape of international finance and taxation.

Question	Answer
Form Name	Form 1042
Form Length	2 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	30 sec
Other names	irs form withholding tax, w 4 form, irs withholding tax form, 1042

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Form 1042					Annual Withholding Tax Return for U.S. Source															OMB No. 1545-0096
					Annual Withholding Tax Return for U.S. Source

						Income of Foreign Persons
Department of the Treasury						Income of Foreign Persons														2021
Internal Revenue Service					▶ Go to www.irs.gov/Form1042 for instructions and the latest information.															2021
If this is an amended					return, check here									. . .		.	.	. . . . . . ▶
Name of withholding agent									Employer identification number						For IRS Use Only
															For IRS Use Only

Ch. 3 Status Code						Ch. 4 Status Code						CC							FD
Number, street, and room or suite no. (If a P.O. box, see instructions.)												RD							FF
												CAF							FP
City or town, state or province, country, and ZIP or foreign postal code												CR							I
												EDC							SIC
If you do not expect to file this return in the future, check here ▶											Enter date final	income			paid ▶
Section 1			Record of Federal Tax Liability (do not show federal tax deposits here)
Line		Period			Tax liability for period	Line	Period				Tax liability for period		Line		Period				Tax liability for period
Line		Period		(including any taxes assumed		Line	Period			(including any taxes assumed			Line		Period		(including any taxes assumed
No.		ending			on Form(s) 1000)	No.	ending				on Form(s) 1000)		No.		ending					on Form(s) 1000)
1			7			21		7					41			7
2		Jan.	15			22	May	15					42	Sept.		15
3		Jan.	22			23	May	22					43	Sept.		22
3			22			23		22					43			22
4			31			24		31					44			30
5		Jan. total				25	May total						45	Sept. total
6			7			26		7					46			7
7		Feb.	15			27	June	15					47		Oct.	15
8		Feb.	22			28	June	22					48		Oct.	22
8			22			28		22					48			22
9			28			29		30					49			31
10		Feb. total				30	June total						50	Oct. total
11			7			31		7					51			7
12		Mar.	15			32	July	15					52	Nov.		15
13		Mar.	22			33	July	22					53	Nov.		22
13			22			33		22					53			22
14			31			34		31					54			30
15		Mar. total				35	July total						55	Nov. total
16			7			36		7					56			7
17		Apr.	15			37	Aug.	15					57	Dec.		15
18		Apr.	22			38	Aug.	22					58	Dec.		22
18			22			38		22					58			22
19			30			39		31					59			31
20		Apr. total				40	Aug. total						60	Dec. total
Note: The totals from the above table are to be entered on lines 64b through 64d (as indicated in the instructions for those lines).
61		No. of Forms 1042-S filed: a On paper									b Electronically
62 Total gross amounts reported on all Forms 1042-S and 1000:
	a Total U.S. source FDAP income (other than U.S. source substitute payments) reported													. . .		.	.		62a
	b Total U.S. source substitute payments reported:
		(1) Total U.S. source substitute dividend payments reported												. . .		.	.		62b(1)
		(2) Total U.S. source substitute payments reported other than substitute dividend payments .														.	.		62b(2)
	c	Total gross amounts reported (add lines 62a–b)												. . .		.	.		62c

dEnter gross amounts actually paid if different from gross amounts reported . . . . . . . . . 62d

Third Party	Do you want to allow another person to discuss this return with the IRS (see instructions)?		Yes. Complete the following.		No
Third Party
Designee	Designee’s	Phone	Personal identification
	name ▶	no. ▶	number (PIN)	▶

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than withholding agent) is based on all information of which preparer has any knowledge.

Your	▲	Date
Your
signature

Paid	Print/Type preparer’s name	Preparer’s signature
Paid
Preparer	Firm’s name ▶
Use Only	Firm’s name ▶
Use Only	Firm’s address ▶
	Firm’s address ▶

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Capacity in which acting ▶

Daytime phone number		▶
	Date		Check	if		PTIN
	Date					PTIN

			self-employed
			Firm’s EIN ▶
			Firm’s EIN ▶
			Phone no.
Cat. No. 11384V					Form 1042 (2021)

Form 1042 (2021)

Page 2

63Total tax reported as withheld or paid by withholding agent on all Forms 1042-S and 1000:

a Tax withheld by withholding agent . . . . . . . . . . . . . . . . . . . . . .

bTax withheld by other withholding agents:

(1)	For payments other than substitute dividends
(2)	For substitute dividends

cAdjustments to withholding:

(1)	Adjustments to overwithholding
(2)	Adjustments to underwithholding

d Tax paid by withholding agent . . . . . . . . . . . . . . . . . . . . . . . .

eTotal tax reported as withheld or paid (add lines 63a–d) . . . . . . . . . . . . . . .

Computation of Tax Due or Overpayment


63a

63b(1)
63b(2)

63c(1)	(	)
63c(2)
63d
63e

64Total net tax liability

a	Adjustments to total net tax liability
b	Total net tax liability under chapter 3
c	Total net tax liability under chapter 4
d	Excise tax on specified federal procurement payments (total payments made x 2% (0.02)) . . . .
e	Total net tax liability (add lines 64a–d)

65Total paid by electronic funds transfer (or with a request for extension of time to file):

a	Total paid during calendar year
b	Total paid during subsequent year
66	Enter overpayment applied as credit from 2020 Form 1042

67Credit for amounts withheld by other withholding agents:

a	For payments other than substitute dividend payments
b	For substitute dividend payments
68	Total payments. Add lines 65 through 67

69If line 64e is larger than line 68, enter balance due here . . . . . . . . . . . . . . . .

70a	Enter overpayment attributable to overwithholding on U.S. source income of foreign persons . . .
b	Enter overpayment attributable to excise tax on specified federal procurement payments . . . .

71Apply overpayment (sum of lines 70a and 70b) to (check one):

Credit on 2022 Form 1042 or

Refund

Section 2 Reconciliation of Payments of U.S. Source FDAP Income

64a

64b

64c

64d

64e

65a

65b

67a

67b

70a

70b

1 Total U.S. source FDAP income required to be withheld upon under chapter 4 . . . . . . . .

2Total U.S. source FDAP income required to be reported under chapter 4 but not required to be withheld upon under chapter 4 because:

aAmount of income paid to recipients whose chapter 4 status established no withholding is required .

b	Amount of excluded nonfinancial payments
c	Amount of income paid with respect to grandfathered obligations

dAmount of income effectively connected with the conduct of a trade or business in the U.S. . . .

eTotal U.S. source FDAP income required to be reported under chapter 4 but not required to be

	withheld upon under chapter 4 (add lines 2a–d)
3	Total U.S. source FDAP income reportable under chapter 4 (add lines 1 and 2e)
4	Total U.S. source FDAP income reported on all Forms 1042-S (from line 62a, (b)(1), and (b)(2)) . . .
5	Total variance, subtract line 3 from line 4; if amount other than zero, provide explanation on line 6 . .
6

Section 3 Potential Section 871(m) Transactions

Check here if any payments (including gross proceeds) were made by the withholding agent under a potential section 871(m) transaction, including a notional principal contract or other derivatives contract that references (in whole or in part) a U.S. stock or other underlying security. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 4 Dividend Equivalent Payments by a Qualified Derivatives Dealer (QDD)

Check here if any payments were made by a QDD . . . . . . . . . . . . . . . . . . . . . . . . . . .

If box is checked, you must:

(1)Attach Schedule Q (Form 1042). See instructions.

(2)Enter the EIN (not the QI-EIN) of the QDD ▶

Form 1042 (2021)

How to Edit Form 1042 Online for Free

Having the purpose of allowing it to be as effortless to work with as it can be, we built this PDF editor. The entire process of filling up the w 4 form is going to be straightforward when you follow the next actions.

Step 1: Choose the orange button "Get Form Here" on the website page.

Step 2: The file editing page is currently available. You can add text or change current content.

The next parts will make up the PDF template that you'll be filling out:

Include the expected details in the Jan total Feb, Sept total Oct, May total June, Aug, Dec, Apr, No of Forms S filed a On paper, b Electronically, a Total US source FDAP income, Total US source substitute, c Total gross amounts reported add, b b c d, Third Party Designee, Sign Here, and Do you want to allow another area.

Point out the most crucial information on the Paid Preparer Use Only, signature, Daytime phone number, PrintType preparers name, Preparers signature, Date, Firms name, Firms address, Check if selfemployed, PTIN, Firms EIN, Phone no, For Privacy Act and Paperwork, Cat No V, and Form segment.

step 3 to entering details in federal w 4

Please include the rights and responsibilities of the sides in the Total tax reported as withheld or, Page, a Tax withheld by withholding, For payments other than, c Adjustments to withholding, Adjustments to overwithholding, d Tax paid by withholding agent, Computation of Tax Due or, Total net tax liability, a Adjustments to total net tax, Total paid by electronic funds, a Total paid during calendar year, Enter overpayment applied as, a Enter overpayment, and b b box.

Terminate by checking the following areas and filling them in correspondingly: a Enter overpayment, Apply overpayment sum of lines a, Credit on Form, or Section Reconciliation of, Refund, Total US source FDAP income, a Amount of income paid to, withheld upon under chapter add, a b a b, a b c d, and Section Potential Section m.

Step 3: Click the Done button to save the document. Now it is obtainable for transfer to your electronic device.

Step 4: To prevent yourself from any kind of risks as time goes on, try to make at least several duplicates of the form.

Form 1042 – Fill Out and Use This PDF

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