Where Do I Enter My 1042-S?

The 1042-S is a US IRS form (Foreign Person’s U.S. Source Income Subject to Withholding). It is not a Canadian form and has no dedicated field in StudioTax — you do not import or enter it directly. Instead, you report the underlying income and foreign tax paid on the appropriate lines of your Canadian T1 return.

Step 1 — Determine the income type

The income type is shown in Box 1 of your 1042-S. Refer to the IRS 1042-S instructions  to identify what kind of income you received.

Step 2 — Report the income on your T1 return

Enter the foreign income on page 3 of the T1 General form, on the line that matches your income type:

For dividend or interest income, enter the amount on line 6 of the Line 12100 section in the federal worksheet.

Note: Only report foreign income for which tax was withheld. If no tax was withheld on a particular income source, do not include it on the T2209-ATT worksheet (see Step 3).

Step 3 — Claim the foreign tax credit

If tax was withheld on your US income (shown in Box 7 of the 1042-S), you can claim a foreign tax credit to avoid double taxation. Open the T2209-ATT worksheet and enter the foreign income and the tax withheld (up to 15% of the income).

To add the T2209-ATT to your return, use the Forms Tools.