Form 1042-S
IRS recipient-level information return for US-source income paid to non-residents.
Definition
Form 1042-S is filed by US withholding agents reporting US-source income paid to each non-resident recipient and the corresponding US tax withheld. Recipients use Form 1042-S to claim treaty-rate withholding credits.
Context
AdSense, Amazon KDP, royalty platforms, and Stripe Connect (in some cases) issue Form 1042-S to non-resident-owned LLC recipients.
Example
A non-resident-owned LLC receives AdSense payments. Google issues Form 1042-S showing total payments and US tax withheld at treaty rate (after W-8BEN-E filing).
Common pitfalls
- Recipients should retain Form 1042-S for tax records.
- Discrepancies between 1042-S and 1042 trigger IRS inquiries.