djliney
Level 1
05-23-2021
07:34 PM
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My client receives royalties on a 1042-S from the USA and is a Non-resident. How do I report the income?
He was not in the USA all year and he will pay tax on this in Spain>
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sjrcpa
Level 15
05-23-2021
09:04 PM
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1040NR
The more I know the more I don’t know.
djliney
Level 1
05-24-2021
08:50 AM
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Yes I know he files a 1040NR but there is no form to enter a 1042-S.
Also if he's covered under the treaty, does he still need to pay tax on the royalties received from a US source ? He will pay tax on these in Spain.
sjrcpa
Level 15
05-24-2021
09:08 AM
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Enter it as you would any other royalty.
"covered under the treaty" is pretty vague.
You need to know specifically what the treaty says about US taxation.
The more I know the more I don’t know.
