Form 1042 Annual Withholding Tax Return for U.S. Source Income of

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms. We
incorporate all significant changes to forms posted with this coversheet.
However, unexpected issues occasionally arise, or legislation is passed—in this
case, we will post a new draft of the form to alert users that changes were made
to the previously posted draft. Thus, there are never any changes to the last
posted draft of a form and the final revision of the form. Forms and instructions
are subject to OMB approval before they can be officially released, so we post
drafts of them until they are approved. Drafts of instructions and pubs usually
have some additional changes before their final release. Early release drafts are
at IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by the
form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501”, etc.) in the
body of the message to route your message properly. We cannot respond to all
comments due to the high volume we receive and may not be able to consider
many suggestions until the subsequent revision of the product, but we will
review each “NTF” message. If you have comments on reducing paperwork and
respondent (filer) burden, with respect to draft or final forms, please respond to
the relevant information collection through the Federal Register process; for
more info, click here.

TREASURY/IRS AND OMB USE ONLY DRAFT

1042

Annual Withholding Tax Return for U.S. Source
Income of Foreign Persons

Form
Department of the Treasury
Internal Revenue Service

Go to www.irs.gov/Form1042 for instructions and the latest information.

If this is an amended return, check here .

.

.

.

.

.

.

.

.

.

Ch. 3 Status Code

Ch. 4 Status Code

Number and street (If a P.O. box, see instructions.)
State or province

DRAFT — DO NOT FILE

.

.

.

.

.

.

.

.

.

Country

.

.

.

.

.

.

.

.

For IRS Use Only

CC
RD
CAF
ZIP or foreign postal code CR
EDC
Enter date final income paid

FD
FF
FP
I
SIC

Tax liability for period
(including any taxes assumed
on Form(s) 1000)

7
15
Jan.
22
31
Jan. total
7
15
Feb.
22
28
Feb. total
7
15
Mar.
22
31
Mar. total
7
15
Apr.
22
30
Apr. total

Line
No.

Period
ending

Tax liability for period
(including any taxes assumed
on Form(s) 1000)

21
7
22
15
May
23
22
24
31
25 May total
26
7
27
15
June
28
22
29
30
30 June total
31
7
32
15
July
33
22
34
31
35 July total
36
7
37
15
Aug.
38
22
39
31
40 Aug. total

Line
No.

Period
ending

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

7
15
Sept.
22
30
Sept. total
7
15
Oct.
22
31
Oct. total
7
15
Nov.
22
30
Nov. total
7
15
Dec.
22
31
Dec. total

Tax liability for period
(including any taxes assumed
on Form(s) 1000)

DRAFT — DO NOT FILE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

.

2025

Record of Federal Tax Liability (do not show federal tax deposits here)

Period
ending

Line
No.

.

Room or suite no.

If you do not expect to file this return in the future, check here

Section 1

.

Employer identification number

Name of withholding agent

City or town

OMB No. 1545-0096

Note: The totals from the above table are to be entered on lines 64b through 64d (as indicated in the instructions for those lines).

61
62

No. of Forms 1042-S filed: a On paper
b Electronically
Total gross amounts reported on all Forms 1042-S and 1000:
a Total U.S. source FDAP income (other than U.S. source substitute payments) reported . . . . .
62a
b Total U.S. source substitute payments reported:
(1) Total U.S. source substitute dividend payments reported . . . . . . . . . . . . . . 62b(1)
(2) Total U.S. source substitute payments reported other than substitute dividend payments . . . 62b(2)
62c
c Total gross amounts reported (add lines 62a–b) . . . . . . . . . . . . . . . . .
d Enter gross amounts actually paid if different from gross amounts reported . . . . . . . . .
62d
Do you want to allow another person to discuss this return with the IRS? See instructions.
Yes. Complete the following.
Third Party
Designee’s
Phone
Personal identification
Designee

Sign
Here
Paid
Preparer
Use Only

No

name
no.
number (PIN)
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than withholding agent) is based on all information of which preparer
has any knowledge.
Date

Your
signature
Preparer’s name

Preparer’s signature

Capacity in which acting
Daytime phone number
Date

Firm’s name

PTIN

Firm’s EIN

Firm’s address

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Check
if
self-employed

Phone no.
Cat. No. 11384V

Form 1042 (2025) Created 3/21/25

TREASURY/IRS AND OMB USE ONLY DRAFT
Page 2

Form 1042 (2025)

63

Total tax reported as withheld or paid by withholding agent on all Forms 1042-S and 1000:
a Tax withheld by withholding agent
. . . . . . . . . . . . . . . . . .
b Tax withheld by other withholding agents:
(1) For payments other than substitute dividends . . . . . . . . . . . . . .
(2) For substitute dividends . . . . . . . . . . . . . . . . . . . . .
c Adjustments to withholding:
(1) Adjustments to overwithholding . . . . . . . . . . . . . . . . . .
(2) Adjustments to underwithholding . . . . . . . . . . . . . . . . . .
d Tax paid by withholding agent . . . . . . . . . . . . . . . . . . . .
e Total tax reported as withheld or paid (add lines 63a–d) . . . . . . . . . . .

.

.

.

.

63a

.
.

.
.

.
.

.
.

63b(1)
63b(2)

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

63c(1) (
63c(2)
63d
63e

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

64a
64b
64c
64d
64e

.
.
.

.
.
.

.
.
.

65a
65b
66

.
.
.
.
.
.

.
.
.
.
.
.

.
.
.
.
.
.

67a
67b
68
69
70a
70b

)

Computation of Tax Due or Overpayment
a
b
c
d
e
65
a
b
66
67
a
b
68
69
70a
b
71a

b
d

Total net tax liability
Adjustments to total net tax liability . . . . . . . . . . . . . . . . . . .
Total net tax liability under chapter 3 . . . . . . . . . . . . . . . . . . .
Total net tax liability under chapter 4 . . . . . . . . . . . . . . . . . . .
Excise tax on specified federal procurement payments (total payments made x 2% (0.02)) .
Total net tax liability (add lines 64a–d) . . . . . . . . . . . . . . . . . .
Total paid by electronic funds transfer (or with a request for extension of time to file):
Total paid during calendar year . . . . . . . . . . . . . . . . . . . . .
Total paid during subsequent year . . . . . . . . . . . . . . . . . . . .
Enter overpayment applied as credit from 2024 Form 1042 . . . . . . . . . . .
Credit for amounts withheld by other withholding agents:
For payments other than substitute dividend payments . . . . . . . . . . . . .
For substitute dividend payments . . . . . . . . . . . . . . . . . . . .
Total payments. Add lines 65 through 67 . . . . . . . . . . . . . . . . .
If line 64e is larger than line 68, enter balance due here . . . . . . . . . . . . .
Enter overpayment attributable to overwithholding on U.S. source income of foreign persons
Enter overpayment attributable to excise tax on specified federal procurement payments .
Apply overpayment (sum of lines 70a and 70b) to (check one):
Credit on 2026 Form 1042 or
Refund
To elect direct deposit for this amount, complete lines 71b, 71c, and 71d.
c Type:
Checking
Routing number
Account number

Section 2
1
2
a
b
c
d
e
3
4
5
6

Savings

Reconciliation of Payments of U.S. Source FDAP Income

Total U.S. source FDAP income required to be withheld upon under chapter 4 . . . . . . . .
Total U.S. source FDAP income required to be reported under chapter 4 but not required to be
withheld upon under chapter 4 because:

1

Amount of income paid to recipients whose chapter 4 status established no withholding is required .
Amount of excluded nonfinancial payments . . . . . . . . . . . . . . . . . . . .
Amount of income paid with respect to grandfathered obligations . . . . . . . . . . . .
Amount of income effectively connected with the conduct of a trade or business in the United States
Total U.S. source FDAP income required to be reported under chapter 4 but not required to be
withheld upon under chapter 4 (add lines 2a–d) . . . . . . . . . . . . . . . . . .

2a
2b
2c
2d

Total U.S. source FDAP income reportable under chapter 4 (add lines 1 and 2e) . . . . . .
Total U.S. source FDAP income reported on all Forms 1042-S (from lines 62a, 62b(1), and 62b(2))
Total variance, subtract line 3 from line 4; if amount other than zero, provide explanation on line 6

Section 3

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

64

2e
3
4
5

.
.
.

Potential Section 871(m) Transactions

Check here if any payments (including gross proceeds) were made by the withholding agent under a potential section 871(m)
transaction, including a notional principal contract or other derivatives contract that references (in whole or in part) a U.S. stock or
other underlying security. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 4

Payments by a Qualified Derivatives Dealer (QDD)

Check here if any payments were made by a QDD . . .
If the box is checked, you must do the following.
(1) Attach Schedule(s) Q (Form 1042). See instructions.
(2) Enter your EIN (other than your QI-EIN)

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Form 1042 (2025)