Margaret CPA in OH Posted March 24, 2015 Report Share Posted March 24, 2015 Client who now resides in Australia but still US citizen taught course in US last year. They paid $1250 and withheld $37.50. I asked about 1099 MISC as it's needed to claim the withholding.They just sent a Form 1042-S instead with $125 gross proceeds (I've asked if the balance of the check was travel reimbursement) and 30% withholding of $37.50.I can't find where to enter this data for his Schedule C. I also looked at line 21 but don't see it. I just want to be sure he gets credit for the withheld tax.Thanks! Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 24, 2015 Author Report Share Posted March 24, 2015 Anyone? With 20 views so far, I may not be the only one who is clueless :) Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 24, 2015 Report Share Posted March 24, 2015 Margaret, I don't think that a 1042-S should have been issued for a US citizen. This is not something I know much about (so of course I will try to answer the question .) But I think that whoever issued the form thought that your client was a Non-Resident Alien and would be filing a 1040-NR. Would they consider correcting to a 1099MISC? Or have I just shown everyone that I DON'T KNOW WHAT I AM DOING? And I should not be allowed to prepare tax returns and should go home now. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 24, 2015 Author Report Share Posted March 24, 2015 Gail, that is EXACTLY what I emailed to the client. My guess is that whoever prepared the check just saw the AU address and 'assumed' a foreigner. And I have asked for them to do it properly but doubt that will happen timely.Meanwhile I also encouraged the client to get an EIN (provided links, etc.) and have W-9's at the ready as he plans on doing more teaching/research this year. I hope he follows through.I did click on Line 64, Federal income tax withheld from Forms W-2 and 1099, just in case...Sure enough there are those lovely blue fill in lines so that's what I did. I input From Form 1042-S, XXXX payor, EIN xxxxxxxxx. It flowed through to line 64 but I do get an error that withholdings must be reported on Form W-2, W-2G, K-1, 1099 or Form 8959 to efile as those lovely blue lines don't efile. They won't want to paper file from AU.I will ask how important that $38 is. I'm well over that time to charge by now. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 25, 2015 Report Share Posted March 25, 2015 A very long time ago I had a client who just returned from overseas and received one of those for interest from his broker. He got it straightened out for future years, but that year I just entered the info on Schedule B and had a place in my program where I could add to or over-ride withholding. (Since the broker thought he was foreign and didn't realized he did have the SSN, the broker withheld.) Quote Link to comment Share on other sites More sharing options...
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