What is the 1042-S for Foreign National Students & Employees

A 1042-S is a year-end federal tax document given to a non-resident alien who received wages exempted from federal and state tax withholding by a tax treaty received a non-qualified taxable scholarship. Any amounts received for incidental expenses or by a non-degree candidate are taxable scholarships.  Incidental expenses include room and board, travel, and expenses for equipment and other items that are not required for either enrollment or for attendance, or in a course of instruction.  The 1042-S has an income code, which describes the type of income being reported.  In certain cases, you may receive a W-2 in addition to a 1042-S. The form is typically mailed at the same time as the W-2. The 1042-S will be postmarked no later than March 15

If you know that you should have received Form 1042-S but have not received it, please contact HR Compliance and Immigration Services (HRCIS) at immigration@virginia.edu or 434.924.1377.

U.S. tax law categorizes people as residents or nonresident aliens for tax purposes, which is not
necessarily the same as residency, according to immigration law
People considered “residents” for tax purposes follow the same rules as U.S. citizens, but there
are special rules for nonresident aliens for tax purposes
There are also special rules that apply specifically to F-1 students, J-1 students and scholars,
and H-1 employees who are nonresident aliens for tax purposes
For more information, please check the HRCIS section of the HR website or contact HRCIS
at immigration@virginia.eduor 434.924.1377.

For tax purposes, U.S. residents and non-U.S. residents are taxed differently, so it is important
for you to determine your residency status
Non-U.S. residents are only taxed for income acquired during their stay in the U.S..

UVA will issue you a W-2 and/or Form 1042-S
If your home country has a tax treaty with the U.S. that is unlimited in the amount exempted
from withholding and no taxes are deducted from your payroll checks, you will receive only a
1042-S
If your tax treaty is limited in the amount that is exempted from withholding, and you were
paid more than that tax treaty limit with taxes deducted, you will receive both a Form W-2 and
a Form 1042-S
If there is no tax treaty, all of your wages are reported on a Form W-2
Your scholarship payments are reported on the Form 1042-S rather than Form W-2

Nonresident alien employees visiting the U.S. for a limited period on an F-1, J-1, M-1, or Q-1 visa and
performing services for which such visas have been issued are exempt from Social Security and
Medicare tax withholding.

U.S. Social Security and Medicare taxes apply to all compensation for employment services in
the United States unless an exception is available
There are exceptions for nonresidents in F-1, J-1, M-1, or Q-1/Q-2 status under Section
3121(b)(19) of the Internal Revenue Code
Your research colleagues qualify for this NRA FICA exception if they are J-1 researchers and are
still nonresidents for tax purposes
There is no Code exception for H-1B status individuals

A student in F-1 or J-1 Student status will become a resident alien in their 6th and subsequent
calendar years if they meet the 183-day residency formula
Resident aliens do not qualify for the NRA FICA exception
Foreign students are eligible for the Student FICA Exception under the same rules that apply to
U.S. citizen students

Please contact HR Compliance and Immigration Services at immigration@virginia.edu or
434.924.1377.