Understanding Your W-2 and 1042-S: The Tax Forms You'll Receive and What They Mean

Two forms, two different purposes

US employers and schools issue different forms depending on the type of income they paid you and whether a tax treaty applies. The two you are most likely to see as an international student are Form W-2 and Form 1042-S. Understanding what each one covers makes filing simpler, and mixing them up, or missing one entirely, is one of the more common mistakes on a first nonresident return.

Neither form is optional paperwork to set aside. The IRS receives a copy of everything issued to you, so the wage and income figures on your return need to match what your employer and school reported. A mismatch is one of the more common reasons a nonresident return gets flagged for review.

Form W-2: your standard wage statement

Every employer who pays wages to an employee must issue a Form W-2, according to the IRS . It reports your total wages for the year along with federal income tax, state income tax, and, if applicable, Social Security and Medicare tax withheld. Employers must send W-2s to employees by January 31 for the prior tax year.

If you worked an on-campus job, CPT, or OPT and did not claim a tax treaty benefit on that pay, a W-2 is likely the only wage form you will receive from that employer.

Form 1042-S: income tied to your nonresident status

Form 1042-S reports US-source income paid to a foreign person that falls under nonresident withholding rules, per the IRS . Common examples for students include:

• Wages exempt from tax under a treaty between the US and your home country.

• The taxable part of a scholarship or fellowship, meaning any amount beyond tuition and required fees, such as a stipend or room and board allowance.

• Other US-source payments to nonresidents, like certain honoraria or royalties.

Withholding agents, meaning whoever pays you the income, must furnish Form 1042-S to you and file it with the IRS by March 15 of the following year, per the IRS instructions for Form 1042-S . That is later than the W-2 deadline, so do not start your tax return until mid-March if you expect one.

W-2 versus 1042-S at a glance

Why you might get both forms from one employer

If you claimed a tax treaty exemption on your wages by filing Form 8233 with your employer, your pay ends up split across two forms. The treaty-exempt portion goes on a 1042-S, and any wages that exceed the treaty's exemption limit, or that are not covered by the treaty, go on a W-2. Check both forms carefully and add the wage amounts together when you calculate your total income for the year.

Scholarships and fellowships

Tuition and required fees paid directly to your school are not taxable and will not appear on either form. Money paid to you personally, such as a stipend, housing allowance, or a scholarship that covers non-tuition costs, counts as taxable income and typically shows up on a 1042-S, sometimes with tax already withheld at a flat rate unless a treaty reduces or eliminates it.

How the forms feed into your tax return

Both W-2 and 1042-S income go on Form 1040-NR. Wage income from a W-2 goes on the wages line. Income reported on a 1042-S goes on the line that matches the income type shown in its income code box, and any tax already withheld reduces what you owe when you file. If a form looks wrong, contact whoever issued it directly, since the IRS receives a copy and expects your return to match.

If a form does not arrive

Employers must send W-2s by January 31, and withholding agents must send 1042-S forms by March 15. If either is late, contact the payroll or accounts payable office that paid you before your filing deadline. Do not guess at figures. Wait for the actual form, or a written statement of the amounts, before you file.

Keep both forms with your records

Save a copy of every W-2 and 1042-S you receive, along with your pay stubs, for at least 3 years after you file. If the IRS ever has a question about your return, or if a future visa or immigration application asks for proof of your tax filing history, these forms are the documents you will need to produce.