What is Schedule Q (Form 1042)?

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