How Foreign Athletes and Entertainers Are Taxed Using IRS Form 1042-S
Foreign athletes and entertainers who earn income in the United States are subject to U.S. tax withholding and reporting under special tax rules. IRS Form 1042-S is used to report income paid to nonresident aliens and the taxes withheld on that income. What Is IRS Form 1042-S? Form 1042-S, Foreign Person’s U.S. Source Income Subject […]
What Employers Need to Know About the IRS Form 8955-SSA Electronic Filing Mandate
The IRS Form 8955-SSA is used to report separated participants in an employer’s retirement plan who are entitled to deferred benefits. Starting with filings for the 2024 plan year, the IRS has mandated electronic filing for most employers. Here’s what employers need to know about this new requirement. What Is Form 8955-SSA? Form 8955-SSA (Annual […]
FATCA and Form 8966: How High Net-Worth Individuals Are Impacted
The Foreign Account Tax Compliance Act (FATCA) is a U.S. law designed to prevent tax evasion by requiring foreign financial institutions (FFIs) to report financial accounts held by U.S. taxpayers and certain foreign entities with U.S. ownership. Form 8966, filed by these institutions, plays a critical role in enforcing FATCA compliance. What Is Form 8966? […]
W-2 Box 12 Codes: What They Mean for Your Tax Deductions and Credits
Form W-2, which reports your wages and tax information, includes Box 12, where various codes are used to indicate different types of compensation, deductions, and benefits. Understanding these codes can help you determine potential tax deductions and credits. Common W-2 Box 12 Codes and Their Tax Implications Retirement Contributions D – 401(k) elective deferrals (pre-tax […]
Do Fantasy Sports Winnings Get Reported on IRS Form W-2G?
Fantasy sports winnings are typically not reported on IRS Form W-2G because this form is generally used for reporting gambling winnings from lotteries, casinos, horse racing, and other traditional gambling activities. However, fantasy sports are usually classified as games of skill rather than gambling, which means they are often reported differently for tax purposes. How […]
Understanding IRS Form 1099-SA: How Health Savings Account (HSA) Distributions Are Reported
What Is Form 1099-SA? IRS Form 1099-SA is used to report distributions from a Health Savings Account (HSA), Medical Savings Account (MSA), or Archer MSA. If you withdrew money from an HSA in a given tax year, your HSA provider (bank or financial institution) will issue Form 1099-SA to you and the IRS. Key Components […]
Why You Might Receive Form 5498 in May Instead of January
IRS Form 5498, IRA Contribution Information, is used by financial institutions to report contributions, rollovers, and other transactions related to Individual Retirement Accounts (IRAs). Unlike most tax forms that are due in January, Form 5498 is typically sent to account holders in May. Reasons Why Form 5498 Is Sent in May Contributions Can Be Made […]
IRS Form 1042-S: Withholding Tax Credit for Foreign Persons
Nonresident aliens (NRAs) can claim a withholding tax credit on Form 1040-NR, U.S. Nonresident Alien Income Tax Return using the information reported on Form 1042-S. How to Claim the Withholding Tax Credit on Form 1040-NR Gather Form 1042-S If you received U.S.-source income (e.g., wages, scholarships, dividends, royalties, or other taxable payments), your withholding agent […]
