Form 1042: The Annual Withholding Tax Return for Foreign Income
Published November 8, 2026
Form 1042 is the annual return for withholding agents. A withholding agent is a person who controls, has custody of, or pays income that is subject to withholding when the income goes to a foreign person. The return reports the tax withheld for the preceding calendar year.
This post is general information from the IRS form and its instructions. It does not say whether a payer must file, and it does not give tax advice for a particular payment.
Who must file
The instructions say that every withholding agent who has tax withheld under chapter 3 or chapter 4 of the Internal Revenue Code must file Form 1042 for the year. A withholding agent files unless an exception applies. The exceptions are listed in the instructions, so check them before you decide not to file.
Foreign partnerships, foreign corporations, foreign estates, foreign trusts, and nonresident aliens are the persons whose income is subject to withholding. The return reports the withholding on that income.
How Form 1042 works with Form 1042-S
Form 1042-S is the statement for each recipient. It shows the income and the tax withheld for that person. Form 1042 is the summary return that reports the total tax withheld for the year. The two forms must match.
The instructions also explain that some amounts go on Form 945 instead. Form 945 covers certain withheld tax that is not reported on Form 1042, so check the instructions before you choose the form.
The monthly liability record
Section 1 of the form records the federal tax liability by month. Each month has its own line, with a total for each quarter and a year total. The liability lines show when the tax was due, so the monthly figures should match the deposits made during the year.
Any balance at the end of December that is less than the amount set in the instructions can be sent with the return. The instructions give the threshold and the rules for larger balances.
Due date
The return is due on March 15 of the year after the calendar year being reported. The instructions describe the mailing address for paper filing. They also explain the electronic filing requirements, so check those before you choose the method of filing.
Corrections and adjustments
If a Form 1042-S is corrected after the return is filed, the instructions explain whether the Form 1042 must be amended. An amended return is marked with the box at the top of the form. Keep a copy of the corrected statements with the return, so the totals can be checked against each other later.
A check before filing
Before filing, add the monthly liability totals and compare them with the deposits made during the year. Then compare the total tax withheld with the sum of the Forms 1042-S. A difference is a reason to review the statements before the return goes out, not after.
Mistakes to avoid
- Filing Form 1042 without matching Form 1042-S statements for each recipient.
- Reporting withheld tax on Form 1042 when the instructions point to Form 945.
- Missing the March 15 due date. Check the instructions for any extension that applies.
- Leaving the monthly liability lines blank when deposits were made.
For the recipient statement, see Form 1042-S: The Statement for Foreign Persons' U.S. Income. For the return that covers other withheld federal income tax, see Form 945: Annual Return of Withheld Federal Income Tax. For a related withholding rule, see Backup Withholding and Form W-9: What to Know.
The forms and rules change each year. Use the instructions for the year you are reporting before you complete any section.
Sources: Sources: IRS, Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons (2025) (https://www.irs.gov/pub/irs-pdf/f1042.pdf); Instructions for Form 1042 (2025) (https://www.irs.gov/pub/irs-pdf/i1042.pdf) This is general information, not advice about your specific return.
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