1042-S where to report income Tax return for year 2022 in Ufile

[Sui]

anyone know how and where to report 1042-S in Ufile?

My son started his new job last year. Is a US company file income tax in Canada, Ontario. He received a 1042-S form he buy company shares through payroll. Not a pension contribution.

Box 1) income code 52,  2) Gross income 22.00,  3b) tax rate 15.  4a) exemption code 15,  7a) Fed tax held 3.00   10) total withholding credit 3.00  

12a) withholding agent, 12b) & 12c) status code.  12d) withholding agent name.

All these Box numbers where and how to report it in Ufile? Can he file this in electronic ? Please advise, much appreciate.

[Geo123]

Hello Sui,

1042-S form – Foreign Person’s U.S. Source Income Subject to Withholding is issued to non-residents of the USA that have investments there. The issuer of this slip is usually a financial institution like a bank, based on the information they have on file provided by the individual, as a non-resident of the USA.

Alternatively, if the individual does not inform the institution of their residency status, then they will be issued a 1099-INT/DIV.

https://www.irs.gov/forms-pubs/about-form-1042-s

 

You must first determine residency, ie resident of Canada or USA. 

>>To determine whether you will need to continue paying tax in Canada, the government will first check whether you have retained significant ties here

 

If you are a Canadian resident, then you will report it as foreign interest and dividends, as well as taxes withheld on the “Foreign” slip in your Canadian tax return package.

*Interview Set Up

*Foreign income or foreign property (T1135) >>

*Income from foreign dividends "+" OR Interest OR Other

Example :

Exchange rate to apply 1.3013

 Amount of foreign income received $1,000.00

Amount of foreign tax paid $100.00

 

>>You should contact the CRA to determine what exactly is the type of income.

 

If USA resident

Canadian non-residents are subject to Canadian sourced income only; your income has already been held at source by the financial institution. Which then means that you do not need to report the 1042-S on a Canadian tax return. These amounts should be applied to IRS reporting 1040 , U.S. Individual Income Tax Return or 1040-NR, U.S. Nonresident Alien Income Tax Return

https://www.irs.gov/forms-pubs/about-form-1040

https://www.irs.gov/forms-pubs/about-form-1040-nr

 

[Sui]

Thanks Geo123,

 I might understand but may not. Still get confusing. Canadian citizens working in canada for a US company. Withholding agent is computershare. So is a Canadian institution. So I don’t understand the 1099-Int/div?? They know residency status is Canada, Canadian. The 1042-S form copy B.
I’ll try to - interview setup- income from foreign dividends. ( I don’t understand the foreign income or foreign property T1135) do I still need??

This is a small amount income but I know still need to declare to file it income tax.

Can I file electronic or must file mail paper??

Usually I filed electronic in the past year.

[Geo123]

Hello Sui,

Please contact the CRA.  You have a IRS 1042-S which is similar, with a notable exception, to the IRS 1099-Int/div.  Once the CRA guides you on what type of  foreign income it is you can file electronically with UFile.