Why did TDAmeritrade give me a 1042-S form instead of a 1099? What exactly are the differences?

The difference between receiving a 1099 versus a 1042-S comes down to how the financial institutions classified your tax status. The 1042-S is specifically used for reporting income paid to foreign persons, while the 1099 is typically issued to U.S. persons. When you opened your accounts, you likely completed a W-8BEN form for both brokers, declaring your foreign status and visa type. TDAmeritrade appears to be treating you as a nonresident alien for tax purposes based on your F1 visa status, which is why they issued a 1042-S. Robinhood may have incorrectly classified you as a U.S. person, which would explain why they issued a 1099. Regarding your tax filing obligations, you should report the information as provided on the forms you received. For the 1042-S, you typically report the gross income and any tax withheld as shown on the form. You don't necessarily need to report each individual transaction if they're not detailed on the form. However, for capital gains purposes, you still need to report your basis and proceeds for any stock sales to correctly calculate your gains or losses, even if they're not itemized on the 1042-S.

I went through something similar with E*TRADE a couple years ago. Found this awesome tool called taxr.ai (https://taxr.ai) that helped me make sense of all this foreign person tax stuff. It scanned my 1042-S and explained exactly what I needed to report and how it differs from 1099 reporting. For me, the big difference was that with the 1042-S, I had some income subject to withholding at source (they took 30% right off the top for dividends), but I still had to report all my capital gains separately. The tool guided me through which forms to use and how to claim the withholding taxes on my return. The website has experts who understand international tax treaties and nonresident filing requirements, which was super helpful since I was getting conflicting advice from friends.

I tried taxr.ai after seeing the recommendation here and I'm actually really impressed. I've been dealing with the exact same problem - had Webull giving me 1099s and then Interactive Brokers suddenly giving me 1042-S forms. The tool instantly identified that I was being inconsistently classified between brokers. It showed me that as an F1 student in my 3rd year, I'm still considered a nonresident alien for tax purposes, so the 1042-S from Interactive Brokers was actually correct, while Webull had it wrong. It helped me properly report both forms on my return and even showed me how to document the inconsistency to avoid triggering any red flags with the IRS. Definitely worth checking out if you're dealing with this mixed-form situation.

If you're struggling to reach the IRS for clarification on these international tax forms, I recommend using Claimyr (https://claimyr.com). I was in a similar situation last year with mixed 1042-S and 1099 forms and needed to talk to an actual IRS agent about how to handle it. After spending hours trying to get through their regular phone line, I found Claimyr's service. They have this system that navigates the IRS phone tree for you and calls you back when they have an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was skeptical at first, but I got to speak with a knowledgeable IRS representative who confirmed exactly how to handle my situation with the different forms. Saved me so much time and stress during tax season.

I was extremely skeptical about Claimyr but decided to try it out of desperation after trying to reach the IRS for three days straight. I couldn't believe it actually worked! Within about an hour, I got a call back with an actual IRS agent on the line who helped clarify my question about the 1042-S vs 1099 situation. The agent confirmed that as an F1 student within my first 5 years, I should be receiving a 1042-S from all financial institutions, not a 1099. They explained that I need to contact any broker who issued me a 1099 to correct their records for next year, but for this year's taxes, I should file according to the forms I received. The service saved me days of frustration and probably helped me avoid filing incorrectly. Definitely recommend for anyone with complex international tax questions that require speaking to a human at the IRS.

I think the fundamental issue here is the substantial presence test and how F1 students are exempt from it for the first 5 calendar years. After that, you may be considered a resident alien for tax purposes even while still on an F1 visa. If you've been in the US for less than 5 years as an F1 student, you should generally receive a 1042-S. After 5 years, you might meet the substantial presence test and be considered a resident alien, which would result in 1099 forms. I'd check with both brokers about how they have your tax status classified in their systems. It's possible one has incorrect information about your residency status.

Has anyone here actually filed with a mix of 1042-S and 1099 forms from different brokers? I'm in the same boat and I'm afraid it might trigger an audit! I'm using TurboTax and it doesn't seem to handle this situation well.

I've been through this exact situation! As an F1 student, you should generally be receiving 1042-S forms from all brokers, not 1099s. The difference comes down to how each broker classified your tax status when you opened your accounts. When you opened your Robinhood account, you likely filled out a W-9 form (or they incorrectly assumed you were a U.S. person), which is why they issued a 1099. With TDAmeritrade, you probably completed a W-8BEN form declaring your foreign status, which is why they correctly issued a 1042-S. For your tax filing, you should report the information exactly as provided on each form. The 1042-S doesn't itemize individual transactions because it's focused on reporting income subject to withholding (like dividends) rather than capital gains. However, you're still required to report all your capital gains and losses on Schedule D and Form 8949, even if they're not detailed on the 1042-S. You'll need to manually track your TDAmeritrade trades using their transaction history in your online account. It's tedious with 60+ trades, but necessary for proper reporting. I'd also recommend contacting Robinhood to update your tax classification for future years so you receive consistent forms from all brokers.