If a taxpayer becomes resident during the tax year, but receives a 1042-S and 592-B based on prior non-resident status (1040NR reportable) how should this be dealt with?

lauratavare · ‎04-18-2021

As I understand things, 1042-S income can only be filed on a 1040NR, but the taxpayer tells me they became a resident (substantial presence test) during the year. Any advice??

sjrcpa · ‎04-19-2021

All of the income on a 1042-S can be reported on a 1040.

Your problem is going to be getting credit for any withholding shown on the 1042-S.

The more I know the more I don’t know.

lauratavare · ‎04-19-2021

Spoiler

Thanks

So it’s not possible to claim the credit at all in this situation?

sjrcpa · ‎04-19-2021

If you're filing a 1040, I don't think you'll be able to efile. You can paper file and attach the 1042-S and expect an ~~argument~~ exchange with the IRS.

The more I know the more I don’t know.