Received a 1042-S form from Google AdSense - confused non-US resident, what should I do with it?

The 1042-S form is essentially a record of US-source income paid to foreign persons (non-US citizens/residents) and any tax withholding applied to that income. Since you completed a W-8BEN, you were identifying yourself as a foreign person eligible for reduced withholding rates under a tax treaty. Good news - in most cases, if you've properly completed your W-8BEN form, you don't need to file a US tax return just because you received a 1042-S. The form is primarily for your records and to verify that the proper withholding was applied to your AdSense income. Check Box 7a on your 1042-S, which shows the tax rate applied. If you're from a country with a tax treaty with the US, this is typically 0-15% depending on the treaty. Box 7 shows the actual amount withheld. If Box 7 shows withholding but your country has a lower treaty rate, you might be entitled to a refund, which would require filing. Keep these forms for your records, and do include this income (and any US tax withheld) on your Australian tax return, as your country likely provides foreign tax credits to avoid double taxation.

After struggling with a similar situation last year (Canadian getting AdSense payments), I found this amazing tool called taxr.ai (https://taxr.ai) that literally saved me hours of confusion with my 1042-S form. It analyzed my form, explained every box in plain English, and told me exactly what I needed to do. The tool confirmed I didn't need to file anything with the IRS since my W-8BEN was properly processed and the correct treaty rate was applied. It also gave me documentation explaining how to report this on my Canadian taxes to claim foreign tax credits. Worth checking out if you're confused about these forms!

I was super skeptical about taxr.ai at first (as you can see from my comment above), but I decided to try it anyway since I was completely lost with my 1042-S forms from both Google and Amazon. The tool was actually incredible! It immediately identified that Amazon was withholding at 30% when my country's treaty rate should be 10%. It generated a complete explanation of what forms I needed to file with the IRS to claim back the extra withholding (about $320) and even provided step-by-step instructions. For the Google AdSense 1042-S, it confirmed the withholding was correct at 10% and that I didn't need to file anything with the IRS for that one. It also explained exactly how to report both income sources on my local taxes to claim credits for the US tax paid. Seriously saved me so much stress and probably a few hundred dollars in accounting fees!

If you need to actually contact the IRS about your 1042-S (which you might if the withholding rate is wrong), good luck getting through to them from outside the US. I spent WEEKS trying to call their international number only to be disconnected every time. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c They somehow navigate the IRS phone system and call you back when they've got an agent on the line. I was able to confirm that I didn't need to file anything since my withholding rate was correct per the tax treaty. Saved me from filing unnecessary paperwork!

I have to eat my words about Claimyr. After posting that skeptical comment, I was still struggling to reach the IRS about my messed up 1042-S withholding (they took 30% when my country's treaty rate is 5%). After three weeks of failed attempts calling the international number, I tried Claimyr out of desperation. Within 20 minutes I was talking to an actual IRS agent who specialized in international tax issues. They confirmed I needed to file Form 1040NR with Form 8833 to claim back the excess withholding. The agent even gave me specific instructions about which address to send my forms to and approximately how long the refund would take to process for international taxpayers. Would have taken me months to figure this out on my own, if ever. I know services like this shouldn't have to exist, but when you're dealing with international tax issues, sometimes you need the help.

Just wanted to add some practical advice as someone who's dealt with this for years receiving US royalties: 1. Keep the 1042-S forms forever, not just for the current tax year 2. Make sure the name on your W-8BEN EXACTLY matches your ID/passport 3. If you ever change countries, submit a new W-8BEN immediately 4. The 1042-S is reported to the IRS, so don't ignore it even if you don't need to file 5. Check the withholding rate every year - I've had it randomly change before

Anyone know if we're supposed to enter these 1042-S values in local tax software? I use the Australian equivalent of TurboTax and there's nowhere obvious to put "foreign tax paid" from these forms.

Great breakdown from everyone here! As someone who's been through this exact situation, I want to emphasize that the 1042-S is really just a "receipt" showing what happened with your US-source income and withholding. The key thing to check is Box 7a (withholding rate) against your country's tax treaty rate. Australia has a pretty favorable treaty with the US - for most types of income like AdSense, the rate should be 0% or very low. If you're seeing 30% withholding, that means your W-8BEN wasn't properly processed or there was some other issue. One thing I learned the hard way: even if everything looks correct on your 1042-S, make sure you're reporting this income on your Australian tax return. The ATO can cross-reference this data, and you'll want to claim any foreign tax credits for whatever was withheld. Keep these forms with your tax records - they're essentially proof of income and tax paid that you may need later. If you're getting different withholding rates year over year for the same income source, that's usually a red flag that something needs to be fixed with your W-8BEN.