The IRS Form 1042-S Income Code is used to classify the type of income being reported. These codes are entered in Box 1 of Form 1042-S and provide details about the nature of the U.S.-source income paid to the recipient.

Fixed, Determinable, Annual, or Periodical (FDAP) Income

01 - Interest paid by U.S. obligors - general
02 - Interest on real property mortgages
03 - Interest paid to controlling foreign corporations
04 - Interest paid by foreign corporations
05 - Interest on tax-free covenant bonds
06 - Dividends paid by U.S. corporations - general
07 - Dividends qualifying for direct dividend rate
08 - Dividends paid by foreign corporations
09 - Capital gains (including real estate) subject to withholding
10 - Industrial royalties
11 - Motion picture or television copyright royalties
12 - Other royalties (e.g., book, music)

Special Payments and Compensation

13 - Real property income and natural resources royalties
14 - Pensions, annuities, alimony, and/or insurance premiums
15 - Scholarship or fellowship grants
16 - Compensation for independent personal services
17 - Compensation for dependent personal services
18 - Compensation for teaching
19 - Compensation during studying and training
20 - Earnings as an artist or athlete

Payments Related to Financial Instruments

21 - Gambling winnings
22 - Payment of winnings from a sweepstakes, wagering pool, or lottery
23 - Prizes and awards
24 - Proceeds from a notional principal contract
25 - Guarantees of indebtedness
26 - Other fixed or determinable annual or periodical income
27 - Publicly traded partnership distributions
28 - Non-effectively connected income (ECI) distributed by a partnership
29 - Deposit interest paid by a foreign branch of a domestic corporation

Other Income Types

30 - Original issue discount (OID)
31 - Short-term OID
32 - Forgiveness of indebtedness
33 - Notional principal contract income
34 - Payments in lieu of dividends
35 - Substitute payments in securities lending transactions
36 - Gains from the sale of patents, copyrights, etc.
37 - Premiums for personal services contracts
38 - Foreign source income effectively connected with a U.S. trade or business

Miscellaneous Codes

50 - Other income (used when no other code applies)