Form 1042-S

What is form 1042-S and why did I receive one?

A 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) is issued to any NonResident Alien (NRA) to report any payments and tax withholdings. Lenoir-Rhyne University will issue a 1042-S form annually to report tax withholdings for certain non-US citizen students who have received scholarships in excess of their tuition and required fees or if they have received other reportable payments from the University. Form 1042-S reports the required 14 percent tax withheld on such excess scholarship or payments.The forms will be mailed prior to the deadline of March 15 to the student’s billing address on file in the Student Information System (MyLR).

A Nonresident Alien’s reportable scholarship/fellowship amounts, as defined below, are included on the Form 1042-S. LRU will withhold at a rate of 14 percent for all international students who have reportable income. These withholdings will be applied to the student account (charged as TAX-INTL) and will be due and payable when assessed. With an exception for employee compensation payments subject to graduated tax withholding (i.e. employment wages), all other payments made to NRAs that are subject to report, regardless of whether taxable or tax-exempt, are required to be reported on Form 1042-S. The Business Office generates a form 1042-S annually for each individual NRA who the University is required to report payments and/or withholdings.

Income Reported on a 1042-S

  • Taxable non-qualified scholarships, fellowships and grants (in excess of tuition, fees & books)
  • Tax-exempt non-scholarships, fellowships and grants (exempt due to a tax treaty benefit)
  • Prizes
  • Taxable reimbursements
  • Royalties
  • Cancellation of indebtedness

Income not Reported on a 1042-S

  • Qualified scholarships (money used to pay for tuition, fees & books)
  • Taxable wages reported on a W-2

Contacts

For any questions regarding your 1042-S, please contact the Office of Student Accounts at 828.328.7705. For any questions regarding your residency status, please contact Eric Brandon at 828.328.7301.