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The time to file your 1042-S and 1042 forms has arrived, and the deadline is quickly approaching on March 17, 2025! As you get ready to file, it’s important to make sure you know the difference between the two IRS forms and what information you need to file accurately.

In this blog, we’ll go over all the essential details about your 1042-S and 1042 forms and how TaxBandits can help speed up your filing process before the deadline.

1042-S and 1042: What’s the Difference?

The difference between Form 1042-S and Form 1042 comes down to what information is reported. Form 1042-S reports U.S.-sourced income that has been paid to foreign individuals or entities by withholding agents. While 1042-S forms are used to report payments made to non-U.S. citizens, Form 1042 is used to report the total amount of tax that has been withheld from the income paid to non-U.S. persons.

Who Files The Forms

For filing 1042-S and 1042 tax forms, withholding agents are required to file each form annually. A withholding agent is an individual, university, corporation, partnership, association, foreign intermediary, or other entity that has provided income to a non-U.S. person. 

Types of Income Reported

When submitting your 1042-S and 1042 forms, you must report various types of U.S.-sourced income paid to foreign individuals, including:

• Wages
• Interest
• Dividends
• Rents
• Royalties
• Pensions
• Scholarships or grants

Information needed for 1042-S & 1042

To complete and submit your 1042-S & 1042 forms without any issues, you’ll need to have certain information prepared in advance. Making sure all necessary details are accurate will help you meet the filing deadline. 

Information Required on Form 1042-S 

• Amounts withheld: Specific details about the amount of U.S. federal income tax withheld on payments, by the withholding regulations outlined in chapters 3 and 4 of the Internal Revenue Code.
• Income codes: Specific codes that are assigned to certain types of income to categorize the kind of payment that was received
• Chapter 3 and Chapter 4 tax code and rates

Information Required on Form 1042 

• Employers Identification number (EIN)

• Chapter 3 status code: Withholding on non-resident aliens and foreign corporations
• Chapter 4 status code: Tax withholding under the Foreign Account Tax Compliance Act (FATCA) for foreign financial institutions and specified non-financial foreign entities.

For more information on IRS requirements for 1042-S and 1042 forms, click here.

Late Filing Penalties

As the March 17th filing deadline for your 1042-S and 1042 forms draws closer, rushed filing could result in costly mistakes. These errors are often misreporting payment amounts, leaving forms incomplete, or submitting incorrect recipient information. Failure to file or submitting inaccurate information can result in significant penalties imposed by the IRS, that lead to fines up to 25% of the total payment amount.

How TaxBandits Can Help

TaxBandits streamlines the e-filing process for your 1042-S & 1042 forms, making it fast, efficient, and accurate. Our user-friendly software provides a variety of options to meet all your filing requirements:

• Bulk Form Uploading: Upload large data files for your filing with precision, supported by thorough error checks.
• Recipient Copy Distribution: Options for either postal mailing or secure online access,
• Federal & State Filing Support: Meet both tax requirements in one place

Don’t risk penalties or last-minute stress—file your 1042-S & 1042 forms with TaxBandits before March 15th!

Need extra time to file? Submit our Extension Form and get up to 30 additional days to complete your forms.