Form 1042-S: Foreign Person’s U.S. Source Income, Codes
Form 1042-S reports U.S. source income paid to foreign persons and the tax withheld on it: the 2026 instructions say Forms 1042-S, whether filed on paper or electronically, must be filed with the IRS and furnished to the recipient of the income by March 15 of the following calendar year, and that if the 15th falls on a Saturday, Sunday, or legal holiday in the District of Columbia or where the return is to be filed, the due date is the next business day. The form uses two-digit income codes (Appendix A) and exemption codes (Appendix B), both reproduced below.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
What Form 1042-S reports
The IRS About Form 1042-S page and the 2026 instructions describe the purpose of the form:
“Use Form 1042-S to report:
Income and amounts withheld as described in the Instructions for Form 1042-S.
Specified Federal procurement payments paid to foreign persons that are subject to withholding under section 5000C.
Distributions of effectively connected income by a publicly traded partnership or nominee.”
“Use Form 1042-S to report income described under Amounts Subject to Reporting on Form 1042-S, later, and to report amounts withheld under chapter 3 or chapter 4.”
The instructions also say which items belong on other forms instead. This quote shows the first two bullets of that list; the IRS list continues with Forms 8288-A, 8805 and 8966.
“Do not use Form 1042-S to report an item required to be reported on any of the following forms.
Form W-2 (wages and other compensation made to employees (other than compensation for dependent personal services for which the beneficial owner is claiming treaty benefits), including wages in the form of group-term life insurance).
Form 1099 (except if indicated otherwise in these instructions).
[…]”
The About page listed this change when we checked on November 2, 2026:
“Changes to the box 13 references in the instructions on the 2026 Form 1042-S -- SEP-14-2026”
Who files it and who receives it
“Every withholding agent (defined in Definitions, later) must file an information return on Form 1042-S to report amounts paid during the preceding calendar year that are described under Amounts Subject to Reporting on Form 1042-S, later. However, withholding agents who are individuals are not required to report a payment on Form 1042-S if they are not making the payment as part of their trade or business and no withholding is required to be made on the payment.”
“You must file a Form 1042-S even if you did not withhold tax under chapter 3 because the income was exempt from tax under a U.S. tax treaty or the Internal Revenue Code, including the exemption for income that is effectively connected with the conduct of a trade or business in the United States, or you released the tax withheld to the recipient. For exceptions, see Amounts That Are Not Subject to Reporting on Form 1042-S, later.”
“Caution: If you file Form 1042-S, you must also file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. See Form 1042 and its instructions for more information.”
The form’s title is “Foreign Person’s U.S. Source Income Subject to Withholding”, and its recipient copies carry a note that names nonresident aliens and foreign corporations (quoted further down). The instructions assign the copies this way:
“Tip: Attach only Copy A to Form 1042-T. Provide Copies B, C, and D to the recipient of the income. All copies must match the copy filed with the IRS.”
Due date and e-filing
“Forms 1042-S, whether filed on paper or electronically, must be filed with the IRS and be furnished to the recipient of the income by March 15 of the following calendar year. If the 15th falls on a Saturday, Sunday, or legal holiday in the District of Columbia or where the return is to be filed, the due date is the next business day.”
“Extension of time to file. To request an extension of time to file Forms 1042-S, file Form 8809, Application for Extension of Time To File Information Returns. See the instructions for Form 8809 at IRS.gov/Form8809 for where to file that form. You should request an extension as soon as you are aware that an extension is necessary, but no later than the due date for filing Form 1042-S. By filing Form 8809, you will get an automatic 30-day extension to file Form 1042-S. If you need more time, you may submit a second Form 8809 before the end of the initial extended due date. See Form 8809 for more information.”
“Recipient copies. You may request a one-time 30-day extension to furnish copies of Forms 1042-S to the recipients using Form 15397, Application for Extension of Time to Furnish Recipient Statements.”
“Forms 1042-S must be e-filed if:
You are a person (including a corporation, partnership, individual, trust, or estate) that is required to file 10 or more information returns during the year; or
You are a partnership with more than 100 partners; or
You are a financial institution (whether U.S. or foreign) regardless of the number of returns required to be filed.”
“IRIS will be available beginning January 1, 2026, and must be used to e-file 2026 Forms 1042-S (due March 15, 2027). Either IRIS or FIRE may be used to e-file 2025 Forms 1042-S (due March 15, 2026).”
Form 1042-S and Form 1040-NR
The recipient’s copies of the 2026 form print a note on U.S. income tax filing requirements. It names Form 1040-NR and Form 1120-F, and the Copy C heading says what the recipient copy is attached to:
“Generally, every nonresident alien individual, nonresident alien fiduciary, and foreign corporation with U.S. income, including income that is effectively connected with the conduct of a trade or business in the United States, must file a U.S. income tax return. However, a return is generally not required to be filed by a nonresident alien individual, nonresident alien fiduciary, or foreign corporation if such person was not engaged in a trade or business in the United States at any time during the tax year and if the tax liability of such person was fully satisfied by the withholding of U.S. tax at the source. See the instructions for Forms 1120-F and 1040-NR for more information. Corporations file Form 1120-F; all others file Form 1040-NR.”
“Copy C for Recipient
Attach to any federal tax return you file”
Box 1 income codes (Appendix A)
Box 1 takes one two-digit income code. The instructions say to use the code that is the most specific, and give examples such as these:
“All filers must enter the appropriate two-digit income code from the list in Appendix A, later. Use the income code that is the most specific. See Pub. 515 for further explanation of the income codes.”
“3. Use code 17 for payments for independent personal services performed by a foreign person (including payments made to an entity). This includes payments that are subject to the business profits article of a treaty.”
“4. Use code 29 (deposit interest) if you are paying bank deposit interest, not code 01 (interest paid by U.S. obligors—general).”
| Code | Description as printed | Group | Footnote |
|---|---|---|---|
| 01 | Interest paid by U.S. obligors—general | Interest | |
| 02 | Interest paid on real property mortgages | Interest | |
| 03 | Interest paid to controlling foreign corporations | Interest | |
| 04 | Interest paid by foreign corporations | Interest | |
| 05 | Interest on tax-free covenant bonds | Interest | |
| 22 | Interest paid on deposit with a foreign branch of a domestic corporation or partnership | Interest | |
| 29 | Deposit interest | Interest | |
| 30 | Original issue discount (OID) | Interest | |
| 31 | Short-term OID | Interest | |
| 33 | Substitute payment—interest | Interest | |
| 51 | Interest paid on certain actively traded or publicly offered securities | Interest | see footnote 1 |
| 54 | Substitute payments—interest from certain actively traded or publicly offered securities | Interest | see footnote 1 |
| 06 | Dividends paid by U.S. corporations—general | Dividend | |
| 07 | Dividends qualifying for direct dividend rate | Dividend | |
| 08 | Dividends paid by foreign corporations | Dividend | |
| 34 | Substitute payment—dividends | Dividend | |
| 40 | Other dividend equivalents under IRC section 871(m) | Dividend | |
| 52 | Dividends paid on certain actively traded or publicly offered securities | Dividend | see footnote 1 |
| 53 | Substitute payments—dividends from certain actively traded or publicly offered securities | Dividend | see footnote 1 |
| 56 | Dividend equivalents under IRC section 871(m) as a result of applying the combined transaction rules | Dividend | |
| 09 | Capital gains | Other | |
| 10 | Industrial royalties | Other | |
| 11 | Motion picture or television copyright royalties | Other | |
| 12 | Other royalties (for example, copyright, software, broadcasting, endorsement payments) | Other | |
| 13 | Royalties paid on certain publicly offered securities | Other | see footnote 1 |
| 14 | Real property income and natural resources royalties | Other | |
| 15 | Pensions, annuities, alimony, and/or insurance premiums | Other | |
| 16 | Scholarship or fellowship grants | Other | |
| 17 | Compensation for independent personal services | Other | see footnote 2 |
| 18 | Compensation for dependent personal services | Other | see footnote 2 |
| 19 | Compensation for teaching | Other | see footnote 2 |
| 20 | Compensation during studying and training | Other | see footnote 2 |
| 23 | Other income | Other | |
| 24 | Qualified investment entity (QIE) distributions of capital gains | Other | |
| 25 | Trust distributions subject to IRC section 1445 | Other | |
| 26 | Unsevered growing crops and timber distributions by a trust subject to IRC section 1445 | Other | |
| 27 | Publicly traded partnership distributions subject to IRC section 1446(a) | Other | |
| 28 | Gambling winnings | Other | see footnote 3 |
| 32 | Notional principal contract income | Other | see footnote 4 |
| 35 | Substitute payment—other | Other | |
| 36 | Capital gains distributions | Other | |
| 37 | Return of capital | Other | |
| 38 | Eligible deferred compensation items subject to IRC section 877A(d)(1) | Other | |
| 39 | Distributions from a nongrantor trust subject to IRC section 877A(f)(1) | Other | |
| 41 | Guarantee of indebtedness | Other | |
| 42 | Earnings as an artist or athlete—no central withholding agreement | Other | see footnote 5 |
| 43 | Earnings as an artist or athlete—central withholding agreement | Other | see footnote 5 |
| 44 | Specified federal procurement payments | Other | |
| 50 | Income previously reported under escrow procedure | Other | see footnote 6 |
| 55 | Taxable death benefits on life insurance contracts | Other | |
| 57 | Amount realized under IRC section 1446(f) | Other | |
| 58 | Publicly traded partnership distributions—undetermined | Other | |
| 59 | Consent fees | Other | |
| 60 | Loan syndication fees | Other | |
| 61 | Settlement payments | Other |
- Footnote 1: This code should only be used if the income paid is described in Regulations section 1.1441-6(c)(2) and the withholding agent has reduced the rate of withholding under an income tax treaty without the recipient providing a U.S. TIN or an FTIN.
- Footnote 2: If compensation that would otherwise be covered under Income Codes 17 through 20 is directly attributable to the recipient’s occupation as an artist or athlete, use Income Code 42 or 43 instead.
- Footnote 3: Subject to 30% withholding rate unless the recipient is from one of the treaty countries listed under Gambling winnings (Income Code 28) in Pub. 515.
- Footnote 4: Use appropriate Interest Income Code for interest from a notional principal contract where nonperiodic payment(s) is treated as a loan.
- Footnote 5: Income Code 43 should only be used if Letter 4492, Venue Notification, has been issued by the IRS (otherwise, use Income Code 42 for earnings as an artist or athlete). If Income Code 42 or 43 is used, Recipient Code 22 (artist or athlete) should be used instead of Recipient Code 16 (individual), 15 (corporation), or 08 (partnership other than withholding foreign partnership, publicly traded partnership, or partnership QDD).
- Footnote 6: Use only to report gross income the tax for which is being deposited in the current year because such tax was previously escrowed for chapters 3 and 4 and the withholding agent previously reported the gross income in a prior year and checked the box to report the tax as not deposited under the escrow procedure. See the instructions for this form for further explanation.
Box 3a and 4a exemption codes (Appendix B)
Box 3a holds a chapter 3 exemption code and box 4a a chapter 4 exemption code. The instructions say when an exemption code may be required and give extra rules for some codes:
“Chapter 3 exemption codes. A chapter 3 exemption code is now required in all cases where the tax withheld is less than 30%. For example, if you are reporting payments of scholarship or fellowship grants that are subject to a 14% withholding tax under section 1441(a), you must report chapter 3 exemption code 02 (exempt or reduced withholding under IRC) in box 3a. See Boxes 3a and 4a for more information.”
“The applicable chapter 3 or 4 exemption code (01 through 24) from Appendix B, later, may be required to be entered if:
The tax rate you entered in box 3b is applied at a reduced rate or if the payment is exempt from withholding, or
The tax rate you entered in box 4b is 00.00.”
“A withholding agent should use chapter 3 exemption code 02 (exempt or reduced withholding under IRC) only if none of the other chapter 3 exemption codes apply.”
“A withholding agent should use exemption code 04 (exempt or reduced withholding under tax treaty) only if withholding at a reduced rate of withholding or if income is exempt from withholding pursuant to an income tax treaty.”
| Code | Authority for exemption as printed | Where | Footnote |
|---|---|---|---|
| 01 | Effectively connected income | Box 3a, chapter 3 | |
| 02 | Exempt or reduced withholding under IRC | Box 3a, chapter 3 | see footnote 7 |
| 03 | Income is not from U.S. sources | Box 3a, chapter 3 | |
| 04 | Exempt or reduced withholding under tax treaty | Box 3a, chapter 3 | |
| 05 | Portfolio interest exempt under IRC | Box 3a, chapter 3 | |
| 06 | QI that assumes primary withholding responsibility | Box 3a, chapter 3 | |
| 07 | Withholding foreign partnership or withholding foreign trust | Box 3a, chapter 3 | |
| 08 | U.S. branch treated as U.S. person | Box 3a, chapter 3 | |
| 10 | QI represents that income is exempt | Box 3a, chapter 3 | |
| 11 | QSL that assumes primary withholding responsibility | Box 3a, chapter 3 | |
| 12 | Payee subjected to chapter 4 withholding | Box 3a, chapter 3 | |
| 22 | QDD that assumes primary withholding responsibility | Box 3a, chapter 3 | |
| 23 | Exempt under section 897(l) | Box 3a, chapter 3 | |
| 24 | Exempt under section 892 | Box 3a, chapter 3 | |
| 13 | Grandfathered payment | Box 4a, chapter 4 | |
| 14 | Effectively connected income | Box 4a, chapter 4 | |
| 15 | Payee not subject to chapter 4 withholding | Box 4a, chapter 4 | |
| 16 | Excluded nonfinancial payment | Box 4a, chapter 4 | |
| 17 | Foreign Entity that assumes primary withholding responsibility | Box 4a, chapter 4 | |
| 18 | U.S. payees of participating FFI or registered deemed-compliant FFI | Box 4a, chapter 4 | |
| 19 | Exempt from withholding under IGA | Box 4a, chapter 4 | see footnote 8 |
| 20 | Dormant account | Box 4a, chapter 4 | see footnote 9 |
| 21 | Other payment not subject to chapter 4 withholding | Box 4a, chapter 4 |
- Footnote 7: This code should only be used if no other specific chapter 3 exemption code applies.
- Footnote 8: Use only to report a U.S. reportable account or nonconsenting U.S. account that is receiving a payment subject to chapter 3 withholding.
- Footnote 9: Use only if applying the escrow procedure for dormant accounts under Regulations section 1.1471-4(b)(6).
What this page does not cover
- Penalty amounts, withholding rates and the status code tables in the instructions are not reproduced on this page.
- Which code fits a particular payment is decided by the withholding agent under the instructions and Publication 515, not here.
Frequently asked questions
What is Form 1042-S used for?
The IRS says to use it to report income and amounts withheld as described in the Instructions for Form 1042-S, specified Federal procurement payments paid to foreign persons that are subject to withholding under section 5000C, and distributions of effectively connected income by a publicly traded partnership or nominee. The instructions say to use it to report income described under Amounts Subject to Reporting and amounts withheld under chapter 3 or chapter 4.
Who files Form 1042-S and who gets a copy?
The instructions say every withholding agent must file an information return on Form 1042-S to report amounts paid during the preceding calendar year, with an exception for withholding agents who are individuals not making the payment as part of their trade or business when no withholding is required. The instructions say, as worded: “Attach only Copy A to Form 1042-T. Provide Copies B, C, and D to the recipient of the income.” Form 1042-T is the transmittal for paper Forms 1042-S.
When is Form 1042-S due?
The instructions say Forms 1042-S must be filed with the IRS and furnished to the recipient by March 15 of the following calendar year, and that if the 15th falls on a Saturday, Sunday, or legal holiday in the District of Columbia or where the return is to be filed, the due date is the next business day. For an extension of time to file, the instructions say to file Form 8809 once the filer is aware one is necessary, but no later than the due date for filing Form 1042-S, which gives an automatic 30-day extension to file. For furnishing recipient copies they describe a one-time 30-day extension requested on Form 15397.
Does a Form 1042-S mean the recipient files a Form 1040-NR?
The form’s printed note for recipients says that, generally, every nonresident alien individual, nonresident alien fiduciary, and foreign corporation with U.S. income, including income that is effectively connected with the conduct of a trade or business in the United States, must file a U.S. income tax return, but a return is generally not required if the person was not engaged in a trade or business in the United States at any time during the tax year and the tax liability was fully satisfied by withholding at the source. It adds that corporations file Form 1120-F and all others file Form 1040-NR.
What are the Form 1042-S income codes?
Box 1 takes a two-digit income code from Appendix A, and the instructions say to use the income code that is the most specific. Appendix A prints 55 codes in three groups: interest income, dividend income and other income. For example, code 16 is scholarship or fellowship grants, code 17 is compensation for independent personal services, code 18 is compensation for dependent personal services and code 29 is deposit interest.
What are the Form 1042-S exemption codes?
Appendix B prints chapter 3 exemption codes for box 3a (01 through 24, 14 codes) and chapter 4 exemption codes for box 4a (13 through 21, 9 codes). The instructions say to use chapter 3 code 02 only if none of the other chapter 3 exemption codes apply, and code 04 only if withholding at a reduced rate or if income is exempt pursuant to an income tax treaty.
Must Forms 1042-S be e-filed?
The instructions say Forms 1042-S must be e-filed if the filer is required to file 10 or more information returns during the year, is a partnership with more than 100 partners, or is a financial institution regardless of the number of returns. They say IRIS must be used to e-file 2026 Forms 1042-S (due March 15, 2027).
Does Form 1042-S replace Form W-2 or Form 1099?
No. The instructions say not to use Form 1042-S to report an item required to be reported on Form W-2 (with an exception for certain compensation for dependent personal services for which the beneficial owner is claiming treaty benefits) or on Form 1099 (except if indicated otherwise in the instructions), among other forms.
Related IRS form pages and tax pages
Sources (checked November 2, 2026): IRS: About Form 1042-S · IRS: Form 1042-S (2026), PDF · IRS: Instructions for Form 1042-S (2026), PDF