Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

Last reviewed: 2025-10-24

Use the Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Tax Form Calculator Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1042 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Use this tool to prepare and calculate amounts for Form 1042 (Annual Withholding Tax Return). You will report total U.S.-source income paid to foreign persons, total tax withheld, and reconcile with Forms 1042-S and 1000.

Tip: Enter whole dollars or cents; calculated summary totals will round to two decimals. Confirm that your withholding agent status, chapter 3 or 4 indicator, and gross income categories align with your Forms 1042-S.

Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Section 1 Record of Federal Tax Liability (Do not show federal tax deposits here)
Line No.	Period ending		Tax liability for period (including any taxes assumed on Form(s) 1000)	Line No.	Period ending		Tax liability for period (including any taxes assumed on Form(s) 1000)	Line No.	Period ending		Tax liability for period (including any taxes assumed on Form(s) 1000)
1	Jan.	7		21	May	7		41	Sept.	7
2		15		22		15		42		15
3		22		23		22		43		22
4		31		24		31		44		30
5	Jan. total			25	May total			45	Sept. total
6	Feb.	7		26	June	7		46	Oct.	7
7		15		27		15		47		15
8		22		28		22		48		22
9		29		29		30		49		31
10	Feb. total			30	June total			50	Oct. total
11	Mar.	7		31	Ju;y	7		51	Nov.	7
12		15		32		15		52		15
13		22		33		22		53		22
14		31		34		31		54		30
15	Mar. total			35	July total			55	Nov. total
16	Apr.	7		36	Aug.	7		56	Dec.	7
17		15		37		15		57		15
18		22		38		22		58		22
19		30		39		31		59		31
20	Apr. total			40	Aug. total			60	Dec. total
61	No. of Forms 1042-S filed: a On paper b Electronically
62	Total gross amounts reported on all Forms 1042-S and 1000:
a	Total U.S. source FDAP income (other than U.S. source substitute payments) reported									62a
b	Total U.S. source substitute payments reported:
	(1) Total U.S. source substitute dividend payments reported									62b(1)
	(2) Total U.S. source substitute payments reported other than substitute dividend payments									62b(2)
c	Total gross amounts reported (Add lines 62a-b)									62c
d	Enter gross amounts actually paid if different from gross amounts reported									62d
63	Total tax reported as withheld or paid by withholding agent on all Forms 1042-S and 1000:
a	Tax withheld by withholding agent									62a
b	Tax withheld by other withholding agents:
	(1) For payments other than substitute dividends									63b(1)
	(2) For substitute dividends									63b(2)
c	Adjustments to withholding:
	(1) Adjustments to overwithholding									63c(1)
	(2) Adjustments to underwithholding									63c(2)
d	Tax paid by withholding agent									63d
e	Total tax reported as withheld or paid (Add lines 63a-d)									63e
64	Total net tax liability
a	Adjustments to total net tax liability									64a
b	Total net tax liability under chapter 3									64b
c	Total net tax liability under chapter 4									64c
d	Excise tax on specified federal procurement payments (Total payments made x %)									64d
e	Total net tax liability (Add lines 64a-d)									64e
65	Total paid by electronic funds transfer (or with a request for extension of time to file):
a	Total paid during calendar year									65a
b	Total paid during subsequent year									65b
66	Enter overpayment applied as credit from 2015 Form 1042									66
67	Credit for amounts withheld by other withholding agents:
a	For payments other than substitute dividend payments									67a
b	For substitute dividend payments									67b
68	Total payments. Add lines 65 through 67									68
69	If line 64e is larger than line 68, enter balance due here									69
70a	Enter overpayment attributable to overwithholding on U.S. source income of foreign persons									70a
b	Enter overpayment attributable to excise tax on specified federal procurement payments									70b
71	Apply overpayment (sum of lines 70a and 70b) to (check one): Credit on 2017 Form 1042 or Refund
Section 2 Reconciliation of Payments of U.S. Source FDAP Income
1	Total U.S. source FDAP income required to be withheld upon under chapter 4									1
2	Total U.S. source FDAP income required to be reported under chapter 4 but not required to be withheld upon under chapter 4 because:
a	Amount of income paid to recipients whose chapter 4 status established no withholding is required									2a
b	Amount of excluded nonfinancial payments									2b
c	Amount of income paid with respect to grandfathered obligations									2c
d	Amount of income effectively connected with the conduct of a trade or business in the U.S.									2d
e	Amount of excluded payments on offshore obligations									2e
f	Amount of excluded payments on collateral									2f
g	Total U.S. source FDAP income required to be reported under chapter 4 but not required to be withheld upon under chapter 4 (Add lines 2a-f)									2g
3	Total U.S. source FDAP income reportable under chapter 4 (Add lines 1 and 2g)									3
4	Total U.S. source FDAP income reported on all Forms 1042-S (from line 62a, (b)(1), and (b)(2))									4
5	Total variance, subtract line 3 from line 4, if amount other than zero, provide explanation on line 6									5
6
Section 3 Notional principal contract payments and other payments on derivative contracts that reference (in whole or in part) a U.S. security
Check here if any payments (including gross proceeds) were made by the withholding agent under notional principal contracts or other derivatives contracts that reference (in whole or in part) a U.S. security (see instructions)

Reminder: The filing deadline is March 15 following the year of payment (or the 15th day of the third calendar month if the tax year differs). Note: For tax year 2024, the IRS has administratively exempted foreign withholding agents from the e-file requirement.

Last reviewed: 2025-10-24: If you believe this form requires an update, please contact us.

About Form 1042

Form 1042 must be filed by any U.S. or foreign withholding agent who pays U.S.-source income (such as interest, dividends, royalties, compensation) to foreign persons and who withholds tax under chapters 3 or 4 or section 5000C. For details see the current instructions.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.