Can I change my tax exemption code on 1042-S forms as an F-1 student?

The 1042-S form reports income paid to foreign persons, and it sounds like your broker has applied a tax treaty exemption that might not be appropriate for your situation. As an F-1 student, you're generally considered a nonresident alien for tax purposes, but the tax treatment can vary based on specific types of income. For small amounts like $1.35 in dividends and $27 in capital gains, you're right to want to report them correctly. You shouldn't change the exemption code yourself on the official forms you received. Instead, you should contact Fidelity and explain that you believe the forms were issued with incorrect exemption codes for your status as an F-1 student. While waiting for corrected forms, you can still file your taxes using the information you have. On your tax return, report the income as taxable regardless of what the 1042-S shows. This may create a discrepancy between your return and what the IRS has on file from Fidelity, but you can attach a statement explaining the situation.

I went through something super similar last year! I had dividend income from Robinhood while on an F-1 visa and they messed up my status. Instead of waiting for them to fix the forms (which took forever when I tried), I found a much easier solution with taxr.ai (https://taxr.ai) - they have a specific tool for international students that handles these exact issues. Their system analyzed my 1042-S forms, figured out the correct tax treatment based on my F-1 status and home country, and prepared the right documentation to explain the discrepancy. Saved me from having to go back and forth with my broker for weeks. They even guided me through which codes should apply to my situation based on my visa status and how long I've been in the US.

Just wanted to update - I tried taxr.ai after seeing the recommendation here and it was exactly what I needed! I uploaded my 1042-S forms and answered questions about my J-1 status, and it immediately identified that my broker had applied the wrong exemption code. The system walked me through exactly what needed to be reported as taxable versus exempt based on the tax treaty with my country. It even generated a detailed explanation letter to attach to my return explaining the discrepancy between what my forms showed and what I was reporting. The whole process took about 20 minutes instead of the weeks I was expecting to spend figuring this out! Best part was that it showed me the specific tax treaty articles that applied to my situation so I actually understand why certain income is taxable or not. Much better than just guessing or hoping my broker got it right.

If you're still struggling with this after trying to fix the forms, you might want to try Claimyr (https://claimyr.com) to get direct help from the IRS. I was in a similar situation with incorrect 1042-S forms as an international student, and after weeks of getting nowhere with my broker, I needed to talk to someone at the IRS who understood tax treaty issues. The problem is the IRS wait times are ridiculous - I kept getting disconnected after waiting on hold for hours. Claimyr got me through to an actual IRS agent in about 20 minutes who specialized in international taxpayer issues. Check out how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that I could file my return reporting the income as taxable, even though the 1042-S showed it as exempt, and explained exactly how to document the discrepancy. They also sent me to the right department to request corrected forms. Way better than waiting for hours or trying to figure it out alone.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was still stuck with my 1042-S issue and getting desperate, so I decided to try it anyway. It actually worked exactly as described. I got through to the IRS International Taxpayer department in about 25 minutes (compared to the 3+ hours I spent trying on my own before getting disconnected). The agent I spoke with immediately understood my F-1 visa situation and explained that my broker had indeed applied the wrong exemption code. She walked me through exactly how to file my return correctly and what documentation to include. The agent even gave me her direct extension and told me to call back if I had any issues after submitting my return. This saved me from potentially filing incorrectly or having to pay a tax professional hundreds of dollars. I'm genuinely surprised and impressed by how well this worked.

Just wanted to add - I'm a tax preparer who works with many international students. The 1042-S confusion is extremely common. Here's what you need to know: 1. Your investment broker probably doesn't have enough information about your specific status to correctly code these forms. They often default to the general nonresident alien classification. 2. For F-1 students, dividend and capital gains income is generally taxable (usually at 30% unless reduced by a tax treaty). 3. Don't manually alter the forms you received - that could cause problems. 4. File Form 8833 (Treaty-Based Return Position Disclosure) if you're claiming treaty benefits, or a statement explaining why you're reporting differently than your 1042-S shows if you're not claiming treaty benefits. 5. If the amounts are small like yours, the likelihood of issues is minimal even if there's a discrepancy.

Has anyone used Sprintax for this kind of situation? My university gives it to international students for free, but I'm not sure if it handles investment income correctly.