Get Answers Support Tax Filings & Payments Other Forms Form 1042 What is Schedule Q (Form 1042)? Last modified 3/6/2024 1:39:34 AM EST Schedule Q (Form 1042), Tax Liability of Qualified Derivatives Dealer (QDD), is used by withholding agents that are QDDs to report their tax liability on Section 871(m) transactions and dividend-equivalent payments. It must be attached to Form 1042 and includes details on net delta exposure and withholding tax payments. What is a QDD? A Qualified Derivatives Dealer (QDD) is a designation under U.S. tax regulations that applies to certain financial institutions that deal in derivatives, securities lending, and similar transactions. Learn More Was this helpful? Yes No Related Questions What are the new updates in Form 1042 for the 2023 Tax Year? What is Tax Liability in Section 1 of Form 1042? What is Schedule Q (Form 1042)? How do I file Form 1042 with TaxBandits? Go to Home Page Need more help? Get in touch with our dedicated support team Contact Us (704) 684-4751 support@taxbandits.com Sign Up for a FREE TaxBandits Account! The Smart CPA Choice Register Now Already have an account? Sign in