Payroll - Explanation of 1042S Form

Questions?

  • Payroll Office
    202-885-3520
    Fax: 202-885-1033
    payroll@american.edu
    New Mexico, Room 350

    9:00am to 5:00pm

Mailing Address

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.