1042-S

Employees and/or students who are foreign nationals will receive a Form 1042-S. A Form 1042-S is a year-end federal tax document given to a non-resident alien who received wages that were exempt from federal and state tax withholding by a tax treaty and/or received a non-qualified taxable scholarship (Any amounts received for incidental expenses or by a non-degree candidate are taxable scholarships. Incidental expenses include room and board, travel, and expenses for equipment and other items that are not required for either enrollment for attendance or in the course of instruction).

The 1042-S has an income code that describes the reported income type. In some instances, you may receive a W-2 and a 1042-S. The form is typically mailed at the same time as the W-2. The 1042-S will be postmarked no later than March 15.

Electronic Access

The process for electronic access to form 1042-S is a quick, convenient, and secure way to access your form online. You can consent to receive electronic tax form 1042-S by logging into your Sprintax Calculus profile and updating your electronic consent box. The benefits of receiving an online 1042-S form are:

Earlier access
Once received electronically, there is significantly less possibility that the W-2 may be lost or stolen.
Access from any location with Internet availability
Environmental impact

“Non-Resident Alien” vs. “Resident Alien”

U.S. and non-U.S. residents are taxed differently for tax purposes, so you must determine your residency status. Non-U.S. residents are only taxed for income acquired during their stay in the U.S. Foreign nationals may receive both the W-2 Form and Form 1042-S for the same tax year in certain instances.

U.S. law categorizes people as residents or non-resident aliens for tax purposes, which is not necessarily the same as residency, according to immigration law. Residents for tax purposes follow the same rules as U.S. citizens, but there are special rules for non-resident aliens for tax purposes. Special rules apply specifically to F-1 students, J-1 students and scholars, and H-1 employees who are non-resident aliens for tax purposes. For more information, please contact the Payroll Office.

Form 1042-S Explained

Box 1: Income Code - This two-digit income code identifies the appropriate income source:
- 12 – Other Royalties (i.e., copyright, recording, publishing)
- 16 – Scholarship or Fellowship Grants
- 17 – Compensation for Independent Personal Services
- 19 – Pay for Individuals whose immigration purpose is Teaching and/or Research
- 20 – Pay for Individuals whose immigration purpose is Studying and Training
- 23 – Other Income
Box 2: Gross Income – Entire Amount of the Payment
Box 3: Chapter 3- If checked, amounts were reported under Chapter 3 of the IRS Code
Box 3a: Exemption Code – Reason for the Exemption Code.
- 02 – Exempt under IRS Code
- 04 – Exempt under Tax Treaty
Box 3b: Tax Rate – Withholding rate based on type of Income
Box 4: Chapter 4 – If checked, amounts were reported under Chapter 4 of the IRS Code
Box 4a: Exemption Code – Reason for the Exemption Code
- 14 – Effectively connected income
- 15 – Payee not subject to Chapter 4 withholding
Box 5: Withholding Allowance – Personal exemption amount, if applicable
Box 6: Net Income – Generally left blank unless Box 5 is used.
Box 7: UU.S.Federal tax withheld – The total dollar amount of federal income tax withheld
Box 9: Total withholding credit - not applicable to W&M
Box 10: Amount repaid to the recipient - not applicable to W&M
Box 14: Recipient’s UU.S.TIN, if any - UU.S.taxpayer identification number
Box 16: Country code - The country the recipient claims residency in under that country’s tax laws.
Box 23: State income tax withheld - State income tax withheld from payments

Frequent 1042-S Questions

I did not receive my 1042-S. How do I get a copy of my 1042-S?

If you know you should have received Form 1042-S but have not, please email the Payroll Office at [[payofc]]. Please note that we can only respond to inquiries regarding 1042-S tax forms for affiliates of William & Mary and the Virginia Institute of Marine Science. Please contact those entities directly for inquiries related to 1042-S forms from other institutions or organizations.

I am a foreign student at W&M on an F-1 visa. I work part-time for my department and receive monthly scholarship payments. Do I receive a W-2 for these payments?

You will be issued a W-2 and/or Form 1042-S from W&M. If you had an unlimited tax treaty exempted from withholding and no taxes are deducted from your payroll checks, you will receive only a 1042-S.

If your tax treaty is limited in the amount exempted from withholding and you were paid over that tax limit with taxes deducted, you will receive both a Form W-2 and a Form 1042-S. Your wages are reported on a Form W-2 if there is no tax treaty. Your scholarship payments are reported on Form 1042-S rather than Form W-2.

I am a foreign national on a J-1 visa employed at W&M as a Researcher. Why aren’t my Social Security or Medicare wages reported on my Form W-2?

Non-resident alien employees visiting the U.S. for a limited period on an F-1, J-1, M-1, or Q-1 visa and performing services for which such visas have been issued are exempt from Social Security and Medicare tax withholding.

I have been a student in the United States for over five years. Am I exempt from FICA?

A student in F-1 or J-1 Student status will become a resident alien in their 6th and subsequent calendar years if they meet the 183-day residency formula. Resident aliens do not qualify for the NRA FICA exception. However, international students are eligible for the Student FICA Exception under the same rules that apply to U.S. citizens students.