TaxBandits Knowledge Base

What is Form 1042?

Form 1042, ‘Annual Withholding Tax Return for U.S. Source Income of Foreign Persons,’ is used by withholding agents to report tax withheld on certain U.S. income paid to foreign individuals, entities, or governments. It applies to payments like interest, dividends, royalties, and other types of income subject to withholding under U.S. tax law.