TaxBandits Knowledge Base

What is Schedule Q (Form 1042)?

If the taxpayer, or any part of the taxpayer's branch, is a Qualified Derivatives Dealer (QDD), they must include a Schedule Q (Form 1042) with their Form 1042. This schedule provides details about the tax liability of each QDD. This Schedule is necessary even if a particular QDD has no tax liability. Schedule Q (Form 1042) replaces the previous need to attach a separate statement to Form 1042 for this purpose.

 

Define-Qualified Derivatives Dealer (QDD) A Qualified Derivatives Dealer (QDD) is a main office or branch that qualifies and is approved for QDD status under a Qualified Intermediary Agreement (QIA). It must meet the requirements outlined in the QIA.