Explanation of 1042S Form
The following descriptions are based on American University's processing and data.
Box 1 "Income Code": The income code defines the type of income received. American University primarily uses the following codes:
- 15-Scholarships and Fellowship Grants
- 16-Compensation for independent personal services
- 17-Compensation for dependent personal services
- 18-Compensation for teaching
- 19-Compensation during studying and training
- 50-Other Income
Box 2 "Gross Income": Amount of money paid to employee
Box 3 "Withholding Allowances": This box will only be completed if the income code in box 1 is 15 (scholarship or fellowship grant) or 16 (compensation for independent personal services).This is the amount of a personal exemption used to reduce the wages for taxing purposes and is in lieu of using a tax treaty exemption.
Box 4 "Net Income": This amount is only completed if box 3 has been completed. It is the result of gross income minus withholding allowance amount.
Box 5 "Tax Rate": This the tax percentage rate applied to tax either Box 1 (gross income) or Box 4 (net income). Valid percentages are 14% or 20%.
Box 6 "Exemption Code": This defines the authority for the gross income's exemption. American University only uses the following codes.
- 00-This code is entered when the tax rate in box 5 is greater than 0.00 and does not apply to backup withholding.
Box 7 "Federal Tax Withheld": Amount of income tax withheld from the payment
Box 8 "Withholding by other agents": not applicable to AU
Box 9 "Total withholding credit": not applicable to AU
Box 10 "Amount repaid to recipient": not applicable to AU
Box 11 "Withholding agent's EIN": American University's federal id number.
Box 12a "Withholding agent's name": American University
Box 12b "Address (number and street)": American University's street address
Box 12c "Additional address line (room or suite no.)": not needed to be used
Box 12d "City or town, province or state, country, ZIP or foreign postal code": American University's city, state and zip.
Box 13a "Recipient's name": Recipient's name receiving the payment
Box 13b "Recipient's code": American University currently only uses code 01 which stands for individual.
Box 13c "Address (number and street)": Recipient's address
Box 13d "Additional address line (room or suite no.)": Recipient's additional address line.
Box 13e "City or town, province or state, country, ZIP or foreign postal code": Recipient's city, state, zip etc.
Box 14 "Recipient's U.S. TIN, if any": U.S. taxpayer identification number
Box 15 "Recipient's foreign tax identifying number, if any": not applicable to American University
Box 16 "Country code": The country of which the recipient claims residency under that counrty's tax laws.
Box 17 "NQI's/Flow-Through Entity's name": not applicable to AU
Box 18 "Country code": not applicable to AU
Box 19a "NQI's/Entity's address (number and street)": not applicable to AU
Box 19b "Additional address line (room or suite no.)": not applicable to AU
Box 19c "City or town, province or state, country, ZIP or foreign postal code": not applicable to AU
Box 20 "NQI's/Entity's U.S. TIN, if any": not applicable to AU
Box 21 "Payer's name and TIN (if different from withholding agent's)": not applicable to AU
Box 22 "Recipient account number (optional)": not applicable to AU
Box 23 "State income tax withheld": State income tax withheld from payments made to recipient.
Box 24 "Payer's state tax no.": State id number used by American University
Box 25 "Name of state": State abbreviation for state income tax withheld on the income received.