F1TaxReturn
Log inFile free now

Tax year 2026Checked

Form 1042-S vs W-2: why you got both and what to do

What Form 1042-S reports, the income codes students see, the boxes that matter, where each amount goes on your 2026 Form 1040-NR, and what to do if the form is late or wrong.

By F1TaxReturn Tax Team. Published ; updated . Facts checked against the sources below on . 10 minute read.

In short

  1. Form 1042-S reports US income paid to a nonresident alien under the nonresident withholding rules, such as a taxable scholarship or treaty-exempt pay, and any tax withheld from it.
  2. Your school or other payer must give you your 2026 Form 1042-S by Monday, March 15, 2027, six weeks after the W-2 deadline of Monday, February 1, 2027.
  3. Income code 16 on a 1042-S means a scholarship or fellowship grant; codes 18, 19 and 20 are pay for services, with 20 used for compensation during studying and training.
  4. Tax withheld on a 1042-S goes on Form 1040-NR line 25g (2026 draft), and the IRS says to use the amount in box 10.
  5. Treaty-exempt income from a 1042-S goes on Schedule OI item L and then Form 1040-NR line 1k (2026 draft), and nowhere else on line 1.
Contents, 10 sections

Form 1042-S reports income paid to a nonresident alien under the nonresident withholding rules, such as a taxable scholarship or treaty-exempt pay, while Form W-2 reports your ordinary wages. If you got both for tax year 2026, report both on one Form 1040-NR, and wait for the 1042-S before you file.

Your school or other payer must give you the 2026 Form 1042-S by Monday, March 15, 2027 (Treas. Reg. 1.1461-1). That is six weeks after the W-2 deadline of Monday, February 1, 2027 (W-2 instructions). This guide is for F-1 and J-1 students who are nonresident aliens for 2026.

What is the difference between Form 1042-S and Form W-2?

Form W-2 reports wages with normal income tax withholding from your Form W-4. Form 1042-S reports payments to a foreign person under the separate nonresident withholding rules: for students, mostly scholarships and treaty-exempt pay (Publication 515).

Form W-2 Form 1042-S
Who sends it Your employer Your school or employer; sometimes a bank or broker
What it reports for students Wages from an on-campus job, CPT or OPT Taxable scholarships and fellowships; treaty-exempt pay
Usual federal withholding Graduated rates, from your Form W-4 14% on a taxable scholarship; 0% or a lower rate where a treaty applies; 30% on most other income
Due to you for 2026 Monday, February 1, 2027 Monday, March 15, 2027
Tax withheld goes on (2026 draft Form 1040-NR) Line 25a Line 25g

A W-2 also shows Social Security and Medicare tax in boxes 4 and 6. Most F-1 and J-1 nonresident aliens do not owe those taxes on pay for work that serves the purpose of their visa, such as an on-campus job or OPT (IRS). If those boxes show an amount, read our FICA refund guide.

Key facts

2026 Form 1042-S due to you
Monday, March 15, 2027
2026 Form W-2 due to you
Monday, February 1, 2027
Income code for scholarships and fellowships
16 (code 15 is pensions and annuities, not scholarships)
Withholding on a taxable scholarship (F, J, M or Q)
Usually 14% of the taxable part
1042-S tax withheld goes on
Form 1040-NR line 25g (2026 draft), from box 10
Treaty-exempt amount goes on
Schedule OI item L (2025 form), then Form 1040-NR line 1k (2026 draft)
For
F-1, J-1, M-1 and Q students who are nonresident aliens for tax year 2026 and received a Form 1042-S, a Form W-2 or both.
Not for
Students who are resident aliens for tax year 2026, usually from their sixth calendar year in the US. They file Form 1040, not Form 1040-NR.

Why did I get both a 1042-S and a W-2?

You get both when part of what you were paid counts as wages and part falls under the nonresident withholding rules, such as a scholarship or treaty-exempt pay. Three situations are common for students.

  1. You had a job and a scholarship. Your job pay is on the W-2. The taxable part of your scholarship, such as money for housing, is on a 1042-S with income code 16.
  2. Your employer applied your tax treaty. You give your employer Form 8233 so it can leave the treaty-exempt part of your pay out of withholding (IRS). Schools often report that exempt part on a 1042-S and the rest on your W-2.
  3. You had a fellowship and an assistantship. A teaching or research assistantship that requires work is wages on a W-2. A fellowship with no work requirement is a scholarship on a 1042-S (IRS).

A bank may also report deposit interest on a 1042-S under code 29. That report does not make the interest taxable (bank interest guide).

What do the income codes on my 1042-S mean?

Box 1 of Form 1042-S holds a two-digit income code that tells you what kind of payment it was. Students mostly see codes 16 to 20, listed in Appendix A of the 2026 Form 1042-S instructions.

Code What it means What you usually do with it
16 Scholarship or fellowship grants Taxable part: Schedule 1 line 8r. Treaty-exempt part: Schedule OI item L and line 1k
17 Independent personal services (contract work) Business income on Schedule C, through Schedule 1 line 3; claim any tax withheld on line 25g
18 Dependent personal services (pay as an employee) Usually treaty-exempt pay: Schedule OI item L and line 1k
19 Teaching Usually treaty-exempt pay: Schedule OI item L and line 1k
20 Compensation during studying and training Usually treaty-exempt pay: Schedule OI item L and line 1k

Code 15 is not a scholarship code: it covers pensions and annuities. For a code not in this table, check Appendix A.

For code 16, payers usually withhold 14% from the taxable part of a scholarship paid to an F, J, M or Q student (Publication 515). The 14% is a prepayment toward your tax, and your Form 1040-NR works out the final amount. Take a student whose only 2026 income was a $10,000 taxable stipend, with no treaty and no deductions. The payer withholds $1,400. The 2026 tax is 10% of $10,000 = $1,000 (2026 rates), so about $400 comes back.

A student from India who qualifies under Article 21(2) would owe $0 on that stipend, because the $16,100 standard deduction covers it (India treaty guide). Our scholarship guide explains which part of a grant is taxable.

Which 1042-S boxes matter for my tax return?

Six boxes on a Form 1042-S matter for your return: 1, 2, 3a, 3b, 7a and 10. The 2025 Form 1040-NR instructions say to claim the withholding shown on your 1042-S on line 25g, and that the credit is the amount in box 10.

Box (name on the form) What it tells you
1 (Income code) The type of income, from the table above
2 (Gross income) The income before any tax was taken out. For a scholarship, it usually leaves out the part spent on tuition and required fees
3a (Exemption code) The reason tax was reduced or not withheld. Code 04 means a tax treaty
3b (Tax rate) The withholding rate: 30.00 means 30%, and 00.00 means the income is exempt
7a (Federal tax withheld) The tax this payer withheld; "-0-" if none
10 (Total withholding credit) Boxes 7a, 8 and 9 added together: the amount you claim on Form 1040-NR line 25g

The Form 1042-S instructions allow exemption code 04 only when income is exempt, or withheld at a reduced rate, under a tax treaty. Box 5, the withholding allowance, is used only with income codes 16 to 20 and 42. Also check that your name and your SSN or ITIN are correct.

Example only, not a real form. Mei's W-2 shows $13,000 of wages in box 1, for Form 1040-NR line 1a. Box 2 shows $1,500 of federal income tax withheld, for line 25a. Her 1042-S shows income code 20 and gross income of $5,000, which goes on Schedule OI item L and line 1k. It also shows exemption code 04, a tax rate of 00.00, and -0- in boxes 7a and 10. Box 10 goes on line 25g. Tax is about $1,312, so her refund is about $188.An illustrative example, not a real form. Mei, an F-1 student from China, was paid $18,000 by her university in 2026. Her Form W-2 shows box 1 wages of $13,000, which go on Form 1040-NR line 1a, and box 2 federal income tax withheld of $1,500, which goes on line 25a. Her Form 1042-S shows box 1 income code 20 (pay during studying and training), box 2 gross income $5,000, which goes on Schedule OI item L and then line 1k, box 3a exemption code 04 (exempt by a tax treaty), box 3b tax rate 00.00 (exempt), box 7a federal tax withheld -0-, and box 10 total withholding credit -0-, which goes on line 25g. On her 2026 Form 1040-NR, using draft line numbers, $13,000 is taxed and $5,000 is not; tax is about $1,312, withholding is $1,500, and the refund is about $188.EXAMPLE, NOT A REAL FORMMei's two forms, and where each box goesIllustrative F-1 student from China. 2026 pay: $18,000.Form W-2 (2026), from the universityBoxExampleMeaning or 1040-NR line1Wages$13,000Line 1a2Federal income tax withheld$1,500Line 25aForm 1042-S (2026), from the universityBoxExampleMeaning or 1040-NR line1Income code20Study and training pay2Gross income$5,000Schedule OI item L,then line 1k3aExemption code04Exempt by a treaty3bTax rate00.00Exempt, so no rate7aFederal tax withheld-0-Nothing withheld10Total withholding credit-0-Line 25gOn her 2026 Form 1040-NR (draft line numbers)Line 1a: $13,000 is taxed. Line 1k: $5,000 is not.Tax about $1,312. Withheld $1,500. Refund about $188.Example only, not a real form. Mei's W-2 shows $13,000 of wages in box 1, for Form 1040-NR line 1a. Box 2 shows $1,500 of federal income tax withheld, for line 25a. Her 1042-S shows income code 20 and gross income of $5,000, which goes on Schedule OI item L and line 1k. It also shows exemption code 04, a tax rate of 00.00, and -0- in boxes 7a and 10. Box 10 goes on line 25g. Tax is about $1,312, so her refund is about $188.An illustrative example, not a real form. Mei, an F-1 student from China, was paid $18,000 by her university in 2026. Her Form W-2 shows box 1 wages of $13,000, which go on Form 1040-NR line 1a, and box 2 federal income tax withheld of $1,500, which goes on line 25a. Her Form 1042-S shows box 1 income code 20 (pay during studying and training), box 2 gross income $5,000, which goes on Schedule OI item L and then line 1k, box 3a exemption code 04 (exempt by a tax treaty), box 3b tax rate 00.00 (exempt), box 7a federal tax withheld -0-, and box 10 total withholding credit -0-, which goes on line 25g. On her 2026 Form 1040-NR, using draft line numbers, $13,000 is taxed and $5,000 is not; tax is about $1,312, withholding is $1,500, and the refund is about $188.EXAMPLE, NOT A REAL FORMMei's two forms, and where each boxgoesIllustrative F-1 student from China. 2026 pay:$18,000.Form W-2 (2026), from the universityBoxExampleMeaning or 1040-NR line1$13,000WagesLine 1a2$1,500Federal income tax withheldLine 25aForm 1042-S (2026), from the universityBoxExampleMeaning or 1040-NR line120Income codeStudy and training pay2$5,000Gross incomeSchedule OI item L, then line 1k3a04Exemption codeExempt by a treaty3b00.00Tax rateExempt, so no rate7a-0-Federal tax withheldNothing withheld10-0-Total withholding creditLine 25gOn her 2026 Form 1040-NR (draft linenumbers)Line 1a: $13,000 is taxed. Line 1k: $5,000 isnot.Tax about $1,312. Withheld $1,500. Refundabout $188.
Example: one student's W-2 and 1042-S, and where each box goes.

Where does each amount go on Form 1040-NR?

On the 2026 draft Form 1040-NR, a taxable scholarship goes on line 8 through Schedule 1, treaty-exempt income goes on line 1k, and 1042-S withholding goes on line 25g. These line numbers come from the draft form, so check them against the final 2026 form when the IRS publishes it. The 2026 Schedule OI is not yet published, so item L here is from the 2025 Schedule OI.

Amount Where it goes (2026 draft)
W-2 box 1 wages Line 1a
Taxable scholarship or fellowship (1042-S code 16) Schedule 1 line 8r, which flows to Form 1040-NR line 8
Treaty-exempt scholarship or pay Schedule OI item L, then line 1k
W-2 box 2 tax withheld Line 25a
1042-S box 10 tax withheld Line 25g

Line 1k is not added into line 9, your total effectively connected income, so treaty-exempt income is not taxed. Schedule OI says to enter that total on line 1k, and "Do not enter it anywhere else on line 1" (2025 Schedule OI). Line 8r of the 2026 draft Schedule 1 reads "Scholarship and fellowship grants not reported on Form W-2".

If your employer did not apply your treaty, the exempt pay is inside W-2 box 1. You can still claim the treaty and get the extra tax back (how to claim a tax treaty). Attach a statement with the information Form 8233 would have given (2025 Form 1040-NR instructions). Count the exempt dollars on line 1k only, so line 1a is your W-2 box 1 minus the exempt amount. Attach a copy of each W-2 and 1042-S to the front of page 1.

Worked example: Mei, F-1 student from China, on-campus job in 2026

Mei is an illustrative F-1 student from China who first came to the US in August 2023. 2026 is her fourth calendar year in the US, so she is a nonresident alien. Her university paid her $18,000 for an on-campus job. She gave payroll a Form 8233 to claim the $5,000 yearly student exemption in Article 20(c) of the US-China tax treaty. No state income tax was withheld.

Payroll reported $5,000 on a Form 1042-S (income code 20, exemption code 04, no tax withheld). It reported the other $13,000 on her W-2, with $1,500 of federal income tax withheld in box 2.

Line (2026 draft Form 1040-NR) Amount
1awages from W-2 box 1 $13,000
1ktreaty-exempt income, from Schedule OI item L $5,000
9total effectively connected income (line 1k is not included) $13,000
15taxable income (no standard deduction for a student from China) $13,000
16tax (approximate) $1,312
25atax withheld, W-2 box 2 $1,500
25gtax withheld, 1042-S box 10 $0
34amount overpaid, her refund (approximate) $188

Tax: 10% of $12,400 = $1,240, plus 12% of $600 ($13,000 minus $12,400) = $72. The total is $1,312, and $1,500 minus $1,312 = $188 back.

Without the treaty, her tax on $18,000 would be $1,240 plus 12% of $5,600 ($672) = $1,912. The treaty saves her $600. The 2026 Tax Table, not yet published, can change these figures by a few dollars. Our China treaty guide covers Article 20.

When will my 1042-S arrive, and should I wait for it?

Your payer must give you your 2026 Form 1042-S by Monday, March 15, 2027. Wait for it before you file if you expect one, because its box 2 and box 10 amounts belong on your return.

Your 2026 income Form 1040-NR due
Wages subject to withholding (on a W-2), with or without a 1042-S Thursday, April 15, 2027
No wages, for example only a taxable scholarship on a 1042-S Tuesday, June 15, 2027

If you are not sure which row fits you, we recommend filing by April 15. That leaves a month between March 15 and the April deadline. A return filed in February on the W-2 alone can miss treaty income for line 1k and tax withheld for line 25g.

If the form still has not arrived near your due date, Form 4868 gives an automatic six-month extension to file. For an April filer the new deadline is Friday, October 15, 2027, and for a June filer it is Wednesday, December 15, 2027. Any tax you owe is still due on the original date (2027 tax deadlines).

What if my 1042-S is missing or wrong?

Contact the payer that should have sent it, usually your school's payroll office. The payer issues the Form 1042-S, so the payer is the one who sends a missing form or corrects a wrong one.

  1. If nothing has arrived by the end of March 2027, ask the payer how and where it sent the form.
  2. Check the form against your own records, line by line.
  3. If something is wrong, ask for a corrected form. The IRS calls it an amended Form 1042-S: it has the "Amended" box checked, an amendment number, and the same unique form identifier as the original (Form 1042-S instructions).
  4. If too much tax was withheld, for example because your treaty was not applied, claim the treaty on your return. The 2025 Form 1040-NR instructions say you file Form 1040-NR to get overwithheld tax back.
  5. If a 1042-S arrives after you have filed and changes your return, file Form 1040-X with a corrected Form 1040-NR marked "Amended" (Form 1040-X instructions).

Watch out

Do not leave treaty-exempt pay or a treaty-exempt scholarship off your return because it is tax-free. It still goes on Schedule OI item L and line 1k.

What to do next

  1. List everyone who paid you in 2026. Expect each W-2 by Monday, February 1, 2027 and each 1042-S by Monday, March 15, 2027.
  2. When a 1042-S arrives, read boxes 1, 2, 3a and 10. Compare it with your W-2 so no dollar is counted twice.
  3. Enter each amount on your 2026 Form 1040-NR using the table above. Our Form 1040-NR guide covers the rest of the return.
  4. Mail the return by Thursday, April 15, 2027 if you had wages on a W-2, or Tuesday, June 15, 2027 if you did not (where to mail it).

F1TaxReturn prepares Form 1040-NR and Form 8843 for free once the IRS publishes the final 2026 forms, but it does not take Form 1042-S income. A 1042-S that only reports bank interest under code 29 does not matter here, because that interest stays off your return. If yours reports a scholarship or treaty-exempt pay, use another method: the IRS instructions, other software, or a tax professional (software comparison).

Questions students ask

I got my 1042-S in March after I already filed. What do I do?

If the 1042-S changes your income or your tax withheld, file Form 1040-X with a corrected Form 1040-NR marked "Amended". To claim a refund this way, you have 3 years after you filed the original return, or 2 years after you paid the tax, whichever is later. If the change means you owe more, we recommend filing it as soon as you can, because interest runs from the original due date. If your return already showed the same income and withholding, you do not need to change anything.

Why was 14% taken from my fellowship?

Payers usually withhold 14% from the taxable part of a US scholarship or fellowship paid to an F, J, M or Q student. The 14% is only a prepayment. Your Form 1040-NR works out the real tax at the 2026 rates, and many students whose only income is a scholarship get part of the 14% back. A tax treaty can reduce the withholding to zero.

My school sent a W-2 and a 1042-S for the same job. Is my pay counted twice?

Usually not. When a school applies your tax treaty, it often reports the exempt part of your pay on Form 1042-S and the rest on your W-2. Add W-2 box 1 and 1042-S box 2 and compare the total with your pay for the year. If the total is higher than your pay, ask payroll which form includes the exempt amount.

Do I need an SSN or ITIN if my only income is on a 1042-S?

Yes, you need one to file Form 1040-NR. An F-1 student who cannot get an SSN because they have no permission to work, but who receives a taxable scholarship, applies for an ITIN. If a scholarship was your only 2026 income, your return is due Tuesday, June 15, 2027.

Does my state tax the income on my 1042-S?

It depends on the state. California does not follow federal tax treaties, so treaty-exempt pay is still taxable on Form 540NR. New York starts from federal adjusted gross income, so treaty-exempt income that is left out of federal AGI stays out of New York income.

Sources

This guide is checked against these 16 documents, most recently on .

  1. Instructions for Form 1042-S (2026), IRS
  2. Form 1042-S (2026), Foreign Person's U.S. Source Income Subject to Withholding, IRS
  3. Instructions for Form 1040-NR (2025), IRS
  4. Form 1040-NR (2026 draft), IRS
  5. Schedule 1 (Form 1040) (2026 draft), IRS
  6. Schedule OI (Form 1040-NR) (2025), IRS
  7. Publication 515 (2026), Withholding of Tax on Nonresident Aliens and Foreign Entities, IRS
  8. Withholding federal income tax on scholarships, fellowships and grants paid to nonresident aliens, IRS
  9. Claiming tax treaty benefits, IRS
  10. United States-China income tax treaty, IRS
  11. Working Families Tax Cuts: individuals and workers (2026 tax rates), IRS
  12. General Instructions for Forms W-2 and W-3 (2026), IRS
  13. 26 CFR 1.1461-1, Payment and returns of tax withheld, eCFR (US National Archives)
  14. Instructions for Form 1040-X, IRS
  15. Foreign student liability for Social Security and Medicare taxes, IRS
  16. 2025 Instructions for Schedule CA (540NR), California Franchise Tax Board