Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Usually, the 1042 s is issued to report a US pension amount paid to a non-US citizen. So yes, it is reportable as foreign pension income. The 1042 s can also be issued for other things, but generally would be a Canadian taxable item, such as a sale of a real estate property in the US.
On which tax form/tax slip in Profile should we input box 2 (Gross Income) and 7a (Federal Tax withheld) of Form 1042-S?
What is the income code in Box 1 of the 1042 - S, and what was the % of tax withheld?
The income code on box 1 is 12 - Other royalties (for example, copyright, software, broadcasting, endorsement payments)
% of tax withheld was 30%.
Thanks.
Royalty income should be reported on a T2125 - business schedule. Remember to convert it to Canadian $$. You will have to complete the FTC schedule to report that the business income was foreign, and record the US tax withheld there. BUT - according to the US/Canadian tax treaty, they should only have withheld 10% tax from Royalty income. That is the most you can claim as a FTC on the Canadian return. To get the rest back, the taxpayer will have to file a US 1040NR.
We are a US Corporation wholly owned by an Ireland Corporation. We paid a large dividend to them and withheld 5% (per treaty).
The 1042 tax deposit has been done.
We have a W-8BEN-E on file and they are a passive entity - Chapter 4 Status.
I will fill out the 1042-S and submit with the 1042T and also the 1042 will be filed timely.
A 1099-DIV will also be reported - This Ireland Corporation does not have a TIN.
How will they get credit for the 1042 withholding without it?
I have contacted the IRS International Help line and was told (after waiting 45 minutes) that this matter was out of their scope.
I appreciate any help!
Kathleen
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.