Irs Form Withholding Tax Details

The Form 1042 is an informational form used to report certain types of income from foreign sources. This form must be filed by certain entities who earn income from foreign sources, and it can be helpful in calculating tax liability on that income. There are a number of specific details that must be accounted for on the Form 1042, so it's important to understand its purpose and use before filing. By understanding what the form covers and how to complete it correctly, taxpayers can avoid potential problems with the IRS.

You'll find information about the type of form you wish to prepare in the table. It will tell you just how long it takes to finish form 1042, what fields you need to fill in, and so on.

QuestionAnswer
Form NameForm 1042
Form Length2 pages
Fillable?Yes
Fillable fields131
Avg. time to fill out26 min 46 sec
Other namesirs form withholding tax, tax withholding form irs, w 4 form, tax calculator

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Form 1042

Annual Withholding Tax Return for U.S. Source

 

 

OMB No. 1545-0096

 

Income of Foreign Persons

 

 

 

 

 

2020

Department of the Treasury

 

 

 

 

 

 

Go to WWW.IRS.GOV/FORM1042 for instructions and the latest information.

 

 

Internal Revenue Service

 

 

If this is an amended return, check here

. . . . . . .

Name of withholding agent

 

 

Employer identification number

 

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)

 

 

Tax liability for period

 

 

Tax liability for 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

 

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

 

22

 

28

22

 

48

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

29

 

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

 

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

 

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

 

 

 

 

 

d Enter 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

signature

 

 

 

 

Paid

Print/Type preparer’s name

Preparer’s signature

 

 

Preparer

Firm’s name

 

Use Only

 

Firm’s address

 

 

 

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

Capacity in which acting

Daytime phone number

 

 

 

 

Date

 

Check

if

 

PTIN

 

 

 

 

 

 

 

 

 

 

 

self-employed

 

 

 

 

 

Firm’s EIN

 

 

 

 

 

 

 

 

 

 

 

 

Phone no.

 

 

 

Cat. No. 11384V

 

 

 

Form 1042 (2020)

Form 1042 (2020)

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

e

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

 

 

 

63a

 

 

 

 

 

63b(1)

 

 

63b(2)

 

 

 

 

 

63c(1)

(

)

63c(2)

 

 

63d

 

 

63e

 

 

 

 

 

Computation of Tax Due or Overpayment

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 2019 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 2021 Form 1042 or

Refund

64a

64b

64c

64d

64e

65a

65b

66

67a

67b

68

69

70a

70b

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

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) . . . . . . .

4Total U.S. source FDAP income reported on all Forms 1042-S (from line 62a, (b)(1), and (b)(2)) . . .

5Total variance, subtract line 3 from line 4; if amount other than zero, provide explanation on line 6 . .

1

2a

2b

2c

2d

2e

3

4

5

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 (2020)

How to Edit Form 1042

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Step 1: Choose the "Get Form Here" button.

Step 2: Now you can change your federal w 4. This multifunctional toolbar will allow you to include, remove, alter, and highlight content or perhaps carry out similar commands.

Fill out all of the following parts to complete the document:

filling out 1042 payment part 1

Fill in the 1 7 2 15 3 22 4 31 5 Jan, 41 7 42 15 43 22 44 30 45 Sept, 21 7 22 15 23 22 24 31 25 May, Nov, Aug, Dec, Mar, Apr, July, b Electronically, a Total U, c Total gross amounts reported, 62a, and 62b(1) 62b(2) 62c 62d areas with any information that can be demanded by the program.

stage 2 to completing 1042 payment

Within the segment discussing c Total gross amounts reported, 62b(1) 62b(2) 62c 62d, Third Party Designee, Sign Here, Paid Preparer Use Only, Do you want to allow another, Yes, Designee’s name ▶, Phone no, Personal identification number, Under penalties of perjury, Your, signature ▲, Date, Capacity in which acting ▶, Daytime phone number ▶, Print/Type preparer’s name, Preparer’s signature, Date, Firm’s name ▶, Firm’s address ▶, Check if self-employed, PTIN, Firm’s EIN ▶, Phone no, For Privacy Act and Paperwork, Cat, and Form 1042 (2020), you will need to put down some appropriate information.

Entering details in 1042 payment stage 3

The Total tax reported as withheld or, a Tax withheld by withholding, (1) For payments other than, c Adjustments to withholding:, Computation of Tax Due or, Total net tax liability, Total paid by electronic funds, a Total paid during calendar year, 63a, 63b(1) 63b(2), 63c(1) ( ) 63c(2) 63d 63e, 64a 64b 64c 64d 64e, and 65a 65b 66 field should be applied to write down the rights or responsibilities of each party.

stage 4 to finishing 1042 payment

Fill in the template by reading these sections: a Total paid during calendar year, b Enter overpayment attributable, 65a 65b 66, 67a 67b 68 69 70a 70b, Apply overpayment (sum of lines, Credit on 2021 Form 1042, Refund, Section 2 Reconciliation of, Total U, Total U, a Amount of income paid to, e Total U, and 2a 2b 2c 2d.

part 5 to finishing 1042 payment

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