Article: 50009

Per IRC section 1441(a), foreign source income (non-U.S. source income) paid to a nonresident alien (NRA) is normally not subject to U.S. tax and usually does not have to be reported. For information about income sourcing rules that apply to nonresident aliens, refer to IRS Pub. 515 (https://www.irs.gov/pub/irs-pdf/p515.pdf), IRC sections 861 – 865, and the IRS Nonresident Alien – Source of Income page (https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens-source-of-income).

If you must report the income item from Form 1042-S, go to Federal Taxes > Review > I’d like to see the forms I’ve filled out or search for a form. Enter “1042S” in the search box and add Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding.

Refer to the Form 1042-S instructions (https://www.irs.gov/pub/irs-pdf/i1042s.pdf) for additional information.