How to Efile a form 1040 Client with Form 1042S Salary paid

[workhard2022]

Question:

I’m working with a potential client who is a scientific researcher at a federal institute. He received a Form 1042-S with federal income tax withholding. He is classified as a resident alien for tax purposes.

When I attempt to file his Form 1040 using ProConnect, I receive several critical diagnostics, mainly indicating that the return cannot be e-filed due to the form 1042-S.

Has anyone encountered a similar situation with a resident alien receiving income reported on Form 1042-S?
If so, how were you able to successfully e-file the return through ProConnect?

Thank you in advance for your insights and suggestions!

[TaxGuyBill]

I don't use ProConnect, so I can't comment on specifics.

But don't rely on the forms, rely on the information.  If it is "salary", enter it as a salary or a W-2.  Enter the Withholding.  Don't worry about it being on a 1042-S, but enter the pertinent information into the software.

If there is withholding, I would attach the 1042-S as an attachment.

[workhard2022 · Accepted solution]

Thank you for sharing your insight—this seems like a very creative approach to handling the challenge of reporting 1042-S income on a Form 1040.

I’m curious if anyone has actually implemented this method successfully, or if there are alternative solutions within ProConnect that others have found effective.

Thanks again!

[TaxGuyBill]

Many people have done just as I have said.

Whether or not there are alternatives in ProConnect, I'm not sure, but the fact you are getting several Critical Diagnostics seems to indicate the only way to do it is to do what I suggested (or paper-file the return, after ensuring the correct information is on the correct lines of the tax return).

In my opinion, too many tax preparers are concerned with entering informational "forms" into software, rather than preparing a tax return with the correct information on the correct lines of the tax forms.

[workhard2022]

Thank you very much Bill. Have a great day!

[George4Tacks]

This may help

https://accountants.intuit.com/support/en-us/help-article/tax-return/entering-form-1042-proconnect/L...

https://accountants.intuit.com/support/en-us/help-article/form-1040-nr/resolve-proconnect-tax-e-file...

[workhard2022]

thanks!

[sjrcpa]

I'm not saying Bill's suggestion won't work, but be prepared for IRS correspondence. They won't be able to match that withholding to a W2.

Are you sure client should file 1040 and not 1040NR?

If it is 1040 and he is still employed, have him change paperwork so he gets a W-2. 

[TaxGuyBill]

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@sjrcpa wrote:

be prepared for IRS correspondence. They won't be able to match that withholding to a W2.

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I agree that it is possible there could be IRS correspondence, but the IRS shouldn't be trying to match it from a W-2.  Withholding from a W-2 goes on line 25a of the 1040, while withholding from an 1042-S goes on line 25c.

[workhard2022]

Thank you for sharing this with me.

Yes, the client is a resident alien for tax purposes. However, because he is on a J-1 visa and works for a federal research institute, his employer issued a Form 1042-S to report his “salary” and the associated federal withholding.

[sjrcpa]

Good point @TaxGuyBill  I forgot about that line.