Tax: Non-US Persons and Entities: Amended Form 1042-S
We may need to amend and re-issue 1042-S forms as additional information becomes available to us. For example, an amended Form 1042-S will be issued to reflect the late announcement by an investment fund that fund units have been reclassified. If we do revise your Form 1042-S, you will receive email notification that there has been a change. A revised form will be posted in Client Portal and resubmitted to the IRS. Consult your tax advisor for further guidance.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: My Form 1042-S is Incorrect
If your name, address or US Taxpayer Identification Number or other information on Form 1042-S is incorrect, log in to Client Portal and:
- Click Support.
- Click Tax Form Correction to open the tax correction form.
- Select the tax year for which you wish to report a correction from tax year list.
- Select your taxpayer status from the drop-down (US Taxpayer, Canadian Taxpayer, Non-US Taxpayer).
- All available tax forms for your selected taxpayer status will display in the Type of Correction section. Click the tax form you would like to correct to review and correct the form.
- Make your corrections to the tax form.
- Click Submit when you have completed your corrections to the tax form.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: What to do if your Form 1042-S is not posted in Client Portal
If you are missing a 1042-S, verify that you received interest, dividends or substitute payments in lieu from US sources in the previous year.
Once you have reviewed your account activity for the previous tax year and determined that you should have received a Form 1042-S for an account, please contact our Client Service department with specific transaction details, including the name of the security, number of shares/contracts and trade dates. We will research the issue and advise you once we have concluded our investigation.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Availability of Form 1042-S
Forms 1042-S are generally made available by March 15 for the previous calendar year.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Form 1042-S
Form 1042-S reports US source income earned by non-US persons subject to US withholding tax, including interest, dividends, substitute payments in lieu and fees earned (paid to and for account managers) on your account for the year. You may receive multiple 1042-S forms reporting different types of income. This information is also reported to the IRS. Each type of income is reported on a separate form using a code in Box 1. Common codes are:
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: How to Access Tax Forms
Your tax forms, including Form 1042-S, Annual Activity Statement and Dividend Report, are available in electronic format. To access forms, log in to Client Portal and click the Reports > Tax menu item. Please review the information on your forms.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Where IB Sends Tax Withheld
Interactive Brokers remits the tax withheld to the US Treasury Department.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: US Withholding Tax on Dividends and Substitute Payments in Lieu
US tax law requires the withholding of tax for non-US persons (non-resident aliens) at a rate of 30% on payments of US source stock dividends, short-term capital gain distributions and substitute payments in lieu. You may be eligible for a reduced rate of withholding if there is a treaty in effect between your country of tax residence and the US, and IB is able to associate the payment with a valid Form W-8. Refer to IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for more information.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Non-US Persons and Entities: What is meant by US source income?
In general, US source income refers to dividend and interest income earned on securities issued by US companies or US registered mutual funds as well as interest earned on US Treasury obligations and US Government agency securities. Non-US persons who receive US source income are subject to US tax withholding. IB is required to report US source income on Form 1042-S (See the next FAQ). Refer to IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities and Publication 519, US Tax Guide for Aliens for more information.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Non-US Persons and Entities: Can I change the residency information on my account?
IBKR will consider a change in residency on your account only on a case by case basis, if the proper documentation requirements have been met. For example, you will be required to submit evidence of a change in residency status, a copy of a green card or document evidencing a change of residency or citizenship. Please contact IBKR’s Client Service department for assistance.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
