Filing 1042-S as a resident alien - need help with tax platforms like TurboTax

Title: Filing 1042-S as a resident alien - need help with tax platforms like TurboTax 1 I'm currently dealing with a confusing tax situation and need some guidance. I moved to the US in early 2022 for work and my residency status changed from nonresident to resident alien during that tax year. Because of this mid-year status change, my university issued me a 1042-S form instead of a W-2 (even though I have no other US income sources). The form has income code 16, nothing in box 3a (shows 00), and box 4a shows 15. I've been trying to figure out how to properly file this using TurboTax or similar tax software, but I'm completely lost! The software doesn't seem to have a straightforward way to input the 1042-S information for resident aliens. Has anyone dealt with a similar situation? Any recommendations on which tax software handles this type of situation better? I'd really appreciate any advice on how to properly report this income as a resident alien. Tax day is approaching fast and I'm getting stressed!

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20 comments

Zoe Stavros

•8M

15 That's definitely a tricky situation! When you have a mid-year residency status change, the tax filing process gets more complicated. For your specific situation with Form 1042-S (income code 16), this typically indicates scholarship/fellowship payments. Since you became a resident alien during 2022, you need to report this income on your tax return, even though tax was withheld via the 1042-S. Most consumer tax software like TurboTax doesn't handle 1042-S forms very intuitively for resident aliens. You'll need to manually enter this as "Other Income" in most cases. In TurboTax, look for the section where you can report additional income not reported on a W-2 or 1099. You'd enter the gross amount from box 2 of your 1042-S and then separately account for any tax withholding shown in box 7. The key is making sure you're filing as a resident alien (typically using Form 1040) and properly accounting for all income and withholding.

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Zoe Stavros

•8M

15 When entering it as "Other Income" in TurboTax, you generally won't have a specific option to indicate it's from a 1042-S, but you can use the description field to note "Scholarship/Fellowship from 1042-S" for your own records. The income code 16 confirms it's scholarship/fellowship income, which for resident aliens is typically reportable but may be partially excludable if used for qualified education expenses. The 15 in box 4a indicates the withholding rate that was applied (15%), which is important when reconciling your tax withholding with your actual tax liability.

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Zoe Stavros

•8M

7 I was in almost the exact same situation last year with a mid-year status change and 1042-S form. After hours of frustration with various tax platforms, I found that taxr.ai https://taxr.ai was a lifesaver for my situation. Their system actually understood how to handle the 1042-S form for resident aliens! I uploaded my 1042-S and answered a few questions about my residency status change, and their system correctly processed everything - even calculated which portion of my income needed to be reported under resident vs. nonresident rules. It was such a relief after struggling with the mainstream tax software that just isn't designed for these international student edge cases.

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Zoe Stavros

•8M

7 You can upload the form directly - I just took a photo of my 1042-S and their system extracted all the information automatically. It was much easier than manual entry where I wasn't even sure which fields corresponded to which boxes. The cost actually ended up being less than what I would have paid for an international tax specialist in my area. Most quote $250+ for international student returns with status changes, especially when 1042-S forms are involved. Plus the convenience of doing it from home without scheduling appointments was a huge bonus during finals week.

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Zoe Stavros

•8M

3 Just wanted to follow up after trying taxr.ai based on the recommendation here. It actually worked perfectly for my situation! I uploaded my 1042-S form and answered questions about when my status changed from nonresident to resident alien. The software recognized the mid-year status change and properly allocated the income between the two periods. It even explained which part of my scholarship was taxable vs. non-taxable based on my qualified education expenses. So relieved to have this filed correctly without spending a fortune on a tax specialist!

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Zoe Stavros

•8M

18 If you need to talk to the IRS about your specific situation (which I highly recommend given your status change), good luck getting through on their regular phone lines! After trying for DAYS to reach someone about my own international student tax questions, I discovered Claimyr https://claimyr.com and their service actually got me connected to an IRS agent in about 20 minutes instead of the hours I had been waiting before. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and confirmed exactly how I should report my 1042-S income after a residency status change. They even explained that I needed to file Form 8833 with my return to claim treaty benefits for the portion of the year I was a nonresident. This kind of specific guidance was impossible to get from general tax software.

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Zoe Stavros

•8M

18 It doesn't jump any queue - what it does is automated the calling process for you. When you call the IRS, you typically have to navigate a bunch of menus, then wait on hold, and if the call drops, you start all over. Claimyr basically handles the initial calling and holding, then alerts you when an actual human agent is on the line. It's definitely not sketchy - they're just using technology to handle the tedious part of waiting on hold. I was skeptical too until I tried it. The IRS phone systems are simply outdated and overwhelmed, especially during tax season, and this service just makes the connection process more efficient.

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Zoe Stavros

•8M

12 I need to eat my words about being skeptical of these services. After struggling for nearly two weeks trying to figure out how to file my 1042-S properly (and failing to reach the IRS directly multiple times), I finally tried Claimyr. Got connected to an IRS representative in about 15 minutes yesterday afternoon when I'd previously been disconnected after 2+ hour waits. The agent explained exactly how to handle my split-year resident status and confirmed that for the resident portion of the year, I needed to report the 1042-S income on line 8 of Schedule 1 with "SCH" written next to it (for scholarship). She also explained how to properly claim credit for the taxes already withheld. Would have been impossible to figure this out on my own with just online research. Sometimes you really do need to speak directly with the IRS!

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Zoe Stavros

•8M

5 Yes, a dual-status return typically requires you to file Form 1040 for the part of the year you were a resident, with Form 1040NR attached as a statement for the nonresident portion. You write "Dual-Status Return" across the top of the return. There's no income threshold that determines whether you need to file this way - it's based solely on your residency status change during the tax year. Even with relatively small income, if you had a legal change in residency status (like passing the substantial presence test mid-year), you technically should file a dual-status return. However, if all your income was from scholarships/fellowships and covered by tax treaties, sometimes a simpler approach can be used, but that's very situation-dependent.

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