1042-S

[AAE]

Hello, I need help with entering 1042-S income and withholding taxes in ProSeries. I have income codes 01, 06, 27, 29, 37, and 57. How do I report the income and withholdings for each code?

Thanks!

[Terry53029]

Pro Series does not support form 1042S. Here is a link to the 1042 instructions.

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irs.gov/pub/irs-pdf/i1042s.pdf

[TaxGuyBill]

You look up each income code to figure out what it is, and then report that income in the appropriate spot on the tax return.

Make sure you have asked the client the appropriate questions to determine if this goes on a 1040 or if it goes on a 1040-NR, as well as if any other foreign-related things apply to the taxpayer (tax treaties, foreign tax credits, FBAR, FATCA, etc.).

[AAE]

Ahh okay. That makes sense. I see that income codes 01, 06, and 29 are interest and dividends so I will report those on schedule b. I am not sure where to report codes 27, 37 or 57. Code 27 is "Publicly traded partnership distributions subject to IRC section 1446(a)". Should my client have received a K-1? Code 37 is return of capital, which I thought was not taxed. And code 57 is "Amount realized under IRC 1446(f).

[sjrcpa]

"Code 27 is "Publicly traded partnership distributions subject to IRC section 1446(a)". Should my client have received a K-1?"

Based on that description, yes there should be a K-1. (Unless the 1042-S info is a valid substitute. I haven't had this situation.)