What is Tax Liability in Section 1 of Form 1042?
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Section 1- Record of Federal Tax Liability (Lines 1 to 60): These lines record the tax you owed when the income was paid or distributed for each quarter-monthly period, whether under Chapter 3 or Chapter 4. This is true regardless of whether the withholding agent took care of the liability through withholding or if the withholding agent paid it directly. Don't use negative numbers on these lines.

If you are required to report a reduction to liability on line 59 (because you made a repayment under the reimbursement or set-off procedure), and this results in a negative amount of tax liability for the period corresponding to line 59, you should instead report any negative amount for the next earlier period(s) so that you are not reporting any negative amounts on lines 1 through 60.