Explanation of the 1042-S Form
Form 1042-S is used to report income paid to or on behalf of a foreign individual. Form 1042-S is prepared by SIUE and provided to required recipients. The form has a number of purposes and is mailed to the IRS and the recipient. This form may report:
- Wage payments made to students and graduate assistants who have claimed tax treaty benefits
- Tax reportable Fellowship/Scholarship income
- Service payments made to independent contractors for work performed in the U.S.
- Royalty payments issued to individuals or entities
- Non-employee Prize or Award payments
Form 1042-S is also used to report non-qualified education (financial aid) expenses, which includes but is not limited to; travel, room and board, research, meal costs and other purposes, etc. Financial aid received in excess of tuition and fees is subject to 14% Federal tax withholding and state tax. Any tax amount due on financial aid is calculated and added to your Banner student account before refund checks are released in the fall and spring semesters.
Form 1042-S is issued by March 15th of each year. In certain cases, a person who receives a Form 1042-S may also receive a W-2 Form in the same tax year. A copy of the 1042-S must be filed with the federal and state tax returns.
An example of Form 1042-S and the instructions are provided for informational purposed only.
If you have any questions please contact Denise Hunt, Payroll Compliance Manager at dhunt@siue.edu, or by phone 618-650-2190.
