How to file US resident tax return 1040 with form 1042-S for scholarships using TurboTax
TLDRIn this informative video, Victoria Jose from VK Consulting guides viewers on how to file personal income taxes using TurboTax, with a focus on a specific scenario involving Form 1042-S. The video is particularly helpful for US residents who have received Form 1042-S, commonly issued to students on visas working at universities. Victoria explains the process of entering income from Form 1042-S under 'Wages' and how to account for taxes paid on this income. She demonstrates navigating TurboTax to input the necessary information, including upgrading to the Deluxe edition if needed. The video concludes with a step-by-step guide on how to review the completed Form 1040 and calculate the tax refund. Victoria also encourages viewers to e-file their tax returns during tax season for efficiency and timely refunds.
Takeaways
- π If you're a US resident with a Form 1042-S (especially with box 16 checked), you likely received it due to being a student or graduate student working at a university.
- πΊπΈ As a US resident, you file Form 1040 instead of Form 1040NR for non-residents, even if you have a Form 1042-S.
- πΌ To enter income from Form 1042-S in TurboTax, navigate to the 'Wages' section and input it under 'Less common income' as 'Miscellaneous income 1099-MISC and 1099-C'.
- π When reporting the income, you treat Form 1042-S as a W-2 and enter it as 'Other earned income', specifying 'Scholarship' as the source.
- πΉ For the amount of income, input the amount received from the scholarship, which in the example provided is fifteen thousand dollars.
- πΉ After entering the income, TurboTax may prompt you to upgrade, but it's not necessary as you can continue in the free edition for this task.
- π° To account for taxes already paid on the Form 1042-S income, go to 'Deductions and credits' and then to 'Estimated and other taxes paid'.
- π You'll find an option for 'Other income taxes paid in 2021' and select 'Withholding not already entered on W2 or 1099' to report the taxes withheld.
- π After entering the taxes paid, you can see the change in your tax refund or due, reflecting the credits for taxes already withheld.
- π To review your tax return, use the 'Tax tools' feature in TurboTax, specifically 'View tax summary' and 'Preview my template' for Form 1040.
- π The final tax return will show your total income, deductions, taxable income, tax calculated, and any tax payments or refunds due.
- β It's recommended to e-file your tax return instead of mailing it, especially during tax season, to ensure timely processing and potential refunds.
Q & A
What is the main topic discussed in the video?
-The main topic discussed in the video is how to file personal income taxes using TurboTax, specifically for U.S. residents who have received a Form 1042-S with the number 16 in the box.
Who typically receives a Form 1042-S?
-A Form 1042-S is typically received by individuals on a student visa, such as graduate students, who work at the university. The university issues this form for the money paid to the student.
What does the number 16 in the box on Form 1042-S indicate?
-The number 16 in the box on Form 1042-S indicates that the form was received for scholarship purposes.
How is the income from Form 1042-S treated when filing taxes?
-The income from Form 1042-S is treated as wages and should be entered under the 'Wages' section, specifically in the 'Less Common Income' category as 'Miscellaneous income 1099-MISC and 1099-C'.
What is the process to enter the income from Form 1042-S in TurboTax?
-In TurboTax, you need to navigate to the 'Wages' page, scroll down to 'Less Common Income', click on 'Start' for 'Miscellaneous income 1099-MISC and 1099-C', and then enter the source of other earned income as 'scholarship' along with the amount.
How are taxes withheld from Form 1042-S entered in TurboTax?
-To enter taxes withheld from Form 1042-S, you go to 'Deductions and Credits', scroll down to 'Estimated and other taxes paid', click on 'Income taxes fee', and then select 'Other income taxes paid in 2021'. You will then enter the amount of withholding not already entered on W-2 or 1099.
What is the purpose of viewing the Form 1040 in TurboTax?
-Viewing the Form 1040 in TurboTax allows you to see your actual income tax return, which includes your personal information, social security number, address, dependences, income sources, deductions, and the final calculation of tax due or refund amount.
Why is it recommended to e-file tax returns instead of mailing them?
-E-filing tax returns is recommended because it is faster, more secure, and reduces the risk of errors or lost documents. It also allows for quicker processing and potential refunds.
What is the standard deduction for a single person as mentioned in the video?
-The standard deduction for a single person, as mentioned in the video, is twelve thousand five hundred fifty dollars ($12,550).
What is the refund amount in the example provided in the video?
-In the example provided in the video, the refund amount is one thousand two hundred ninety-seven dollars ($1,297).
What advice does Victoria give regarding the tax season?
-Victoria advises viewers to e-file their tax returns if possible and not to mail them. She also encourages viewers to file during the tax season to ensure they get their refund on time.
Why might someone need to upgrade within TurboTax during the process described in the video?
-Someone might need to upgrade within TurboTax from the free edition to a higher tier like Deluxe when entering certain types of income that are not covered in the basic version, such as other wages received or other earned income.
Outlines
π Filing Personal Income Taxes with TurboTax for US Residents with Form 1042-S
Victoria Jose from VK Consulting introduces the topic of filing personal income taxes using TurboTax, focusing on a specific scenario where a US resident, possibly a student or graduate working at a university, has received a Form 1042-S with box number 16 checked. This form is typically given to individuals on a student visa who have been in the US for over five years and meet certain requirements, allowing them to file as a US resident using Form 1040 instead of Form 1040NR. The video demonstrates how to enter information from Form 1042-S into TurboTax, treating it as a W-2 equivalent for income received as a scholarship. It guides viewers through entering the income under 'Wages' and then under 'Less Common Income' as 'Miscellaneous Income,' specifying 'Scholarship' as the source and inputting the amount. The process includes an optional upgrade in TurboTax and concludes with a mention of the need to enter taxes paid as well.
πΌ Entering Taxes Paid on Form 1042-S in TurboTax and Viewing the Tax Summary
The second paragraph continues the tutorial on how to file taxes in TurboTax for individuals with Form 1042-S. It explains that after entering the income, the next step is to account for taxes already withheld, which is done under 'Deductions and Credits' by selecting 'Estimated and Other Taxes.' The presenter guides viewers to find 'Other Income Taxes Paid in 2021' and input any taxes withheld that have not been entered on a W-2 or 1099 form. The example provided shows a change in the tax refund amount after entering the withheld taxes. The video then demonstrates how to view the completed Form 1040 to ensure all information is correct before paying for TurboTax to finalize the tax return. It concludes with advice on e-filing tax returns and a reminder to subscribe for more informative content.
π¬ Final Thoughts and Encouragement for E-Filing Tax Returns
In the final paragraph, the presenter expresses hope that everyone will receive their tax refunds on time. They thank the viewers for watching and encourage them to subscribe for more updates and information. The paragraph serves as a closing remark, summarizing the video's purpose and offering a direct call to action for viewers to stay connected with the content provider.
Mindmap
Keywords
π‘Personal Income Taxes
π‘TurboTax
π‘Form 1042-S
π‘US Resident
π‘W-2
π‘Miscellaneous Income
π‘Tax Withholding
π‘Estimated and Other Taxes
π‘Tax Refund
π‘E-file
π‘Tax Season
Highlights
Victoria Jose introduces a video tutorial on filing personal income taxes using TurboTax.
The video focuses on a specific scenario: filing taxes as a US resident with a Form 1042-S with the number 16 in the box.
Individuals on a student visa, particularly graduate students working at a university, receive Form 1042-S for their earnings.
If a student has been in the US for over five years and meets certain criteria, they may file as a US resident using Form 1040.
The video demonstrates how to enter Form 1042-S information into TurboTax, treating it as a W-2 equivalent for tax purposes.
Income from Form 1042-S should be entered under 'Wages' and then 'Less Common Income' in TurboTax.
Miscellaneous income, such as scholarships, is entered separately in TurboTax under 'Other Income Not Already Reported on W2'.
The video shows how to navigate TurboTax to enter income and taxes paid for a more accurate tax return.
Taxes withheld from Form 1042-S are entered under 'Deductions and Credits' and then 'Estimated and Other Taxes'.
The presenter demonstrates how to find and enter 'Other Income Taxes Paid in 2021' in TurboTax.
The video illustrates the change in federal tax due and state tax after entering Form 1042-S information.
TurboTax may prompt users to upgrade when entering certain income types, but it's not always necessary.
The presenter explains how to view the completed Form 1040 to ensure all information is accurate.
The video concludes with a summary of the tax return, showing taxable income, tax calculated, and potential refund.
Victoria Jose advises viewers to e-file their tax returns and to use TurboTax or similar software for ease and accuracy.
The presenter emphasizes the importance of filing taxes during the tax season and the benefits of e-filing over mailing.
The video is intended to be a helpful resource for individuals unsure of how to handle Form 1042-S when filing taxes.
A reminder to subscribe is given at the end of the video for more informative content.
Transcripts
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