To get a refund from the total withholding credit on Form 1042-S, follow these steps:
1. Complete Your U.S. Tax Return (Form 1040-NR)
- If you’re a nonresident alien, you’ll generally file Form 1040-NR. Report all your U.S.-sourced income, deductions, credits, and withholding from your Form 1042-S.
- Enter the total withholding credit (from Box 7 of Form 1042-S) on your tax return as part of the federal income tax withheld. If you received multiple Forms 1042-S, add up the Box 7 amounts and report the total.
2. Calculate Your Refund Amount
- After completing Form 1040-NR, compare the total withholding credit to your calculated tax liability:
- If the withholding credit exceeds your tax liability, you’re eligible for a refund for the overpaid amount.
- If your withholding credit is less than your tax liability, you may owe additional tax.
3. Submit Supporting Documents
- Attach copies of Form 1042-S to your Form 1040-NR to verify the amount of tax withheld.
- If you don’t already have an Individual Taxpayer Identification Number (ITIN), you’ll need to apply for one by filing Form W-7 along with your tax return.
4. File Your Tax Return
- Mail your completed tax return to the IRS with all required documents. Be sure to keep copies of everything for your records.
5. Receive Your Refund
- After processing your return, the IRS will issue a refund if you have no other tax obligations or errors on your return. Refunds may take longer to process if you’re filing a paper return or if there are any discrepancies.
Tips
- File Electronically if eligible, as electronic filing is often faster and reduces the risk of errors.
- Check Your Status on the IRS’s “Where’s My Refund?” tool if you’re awaiting a refund.
This process can sometimes take a few months, especially for international filings, so submitting the correct documents initially can help avoid delays.
