Got a Form 1042-S? What Income Codes 15, 16, 19 and 20 Mean and Where They Go on Your Return

That second tax form from your university is not a duplicate W-2, and the codes in boxes 1 and 3a show whether the money was taxed, treaty-exempt or a refund waiting to happen.

Part of our guide to US taxes on F-1, OPT and H-1B.

Form 1042-S is the IRS form a US payer, usually your university, uses to report income it paid you as a nonresident alien that does not belong on a W-2, plus any tax it withheld. For an international student, the two-digit income code in box 1 tells you what the money was: 16 is a scholarship or fellowship, 19 is treaty-exempt teaching or research pay, 20 is treaty-exempt pay while studying or training, and 15 (pensions and annuities) should almost never appear on a student's form. On the 2025 Form 1040-NR, taxable scholarship income goes on Schedule 1, line 8r, treaty-exempt amounts go on line 1k with Schedule OI, and box 10 withholding goes on line 25g.

Status as of 2026-11-02: the 2026 Instructions for Form 1042-S are published and require payers to furnish 2026 forms by Monday, March 15, 2027 (a payer may ask the IRS for one 30-day extension). The 2026 Form 1040-NR instructions are not posted yet, so line numbers here come from the 2025 instructions. The draft 2026 Form 1040-NR (posted 2026-09-17, "DRAFT - DO NOT FILE") adds a work-authorization question; it is a draft form only.

What is Form 1042-S for international students?

Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, reports income a US payer gave a nonresident alien and the federal tax withheld on it. Students usually receive one for the taxable part of a scholarship or fellowship, or for wages a tax treaty exempts. It supports your Form 1040-NR; it does not replace it.

The 2026 instructions are explicit about students: "Amounts paid to foreign students, trainees, teachers, or researchers as scholarship or fellowship income, and compensation for personal services (whether or not exempt from tax under an income tax treaty) must be reported." The exception most students miss: amounts exempt under section 117 are not reported. Per IRS Publication 515 (2026), for a degree candidate a qualified scholarship covering tuition, required fees, and required books, supplies and equipment is not reportable, while "those parts of a scholarship devoted to travel, room, and board" go on Form 1042-S.

A 1042-S can come from a payroll or fellowship office, an outside sponsor, an employer that accepted your treaty claim, or a brokerage paying dividends (different codes). RSU vest income is wages, which the instructions send to the W-2 unless you claim a treaty exemption; our guide to RSU vesting tax withholding for nonresident aliens covers how vest income is withheld.

Form 1042-S income codes for international students (as of November 2026)

The names below are the ones the IRS prints in Appendix A of the 2026 instructions. The last column uses the 2025 Form 1040-NR, the latest posted.

Withholding on any of these, shown in box 10, goes on line 25g. For an F-1 student, a code 17 form also raises a non-tax question, whether that contractor work was authorized, and that one is for your DSO.

What does code 15 mean on a student's 1042-S?

In the current IRS list, income code 15 is pensions, annuities, alimony and insurance premiums. If a stipend shows 15 in box 1, ask the issuing office whether it should be 16 (a grant) or 19 or 20 (treaty-exempt pay), and request a corrected form. A 15 in box 4a is from a different list: chapter 4 exemption code 15, "payee not subject to chapter 4 withholding," which has nothing to do with pensions.

What does income code 16 mean?

Code 16 is a scholarship or fellowship grant: money for study, training or research that is not payment for services. Pub 515 sets the withholding rate at 14% on taxable grants paid to nonresident aliens in F, J, M or Q status, and 30% for other statuses. A payer can instead treat the grant like wages under an alternate Form W-4 procedure, so not every code 16 form shows exactly 14%.

Pub 515 adds that a grant requiring you to teach, do research or perform other services is wages, reported on a W-2: "It does not matter what term is used to describe the grant." Our explainer on PhD stipend taxes for F-1 students covers that taxability question.

Code 20 treaty wages and code 19 teaching pay

Pub 515 describes code 20 as pay "for personal services performed while a nonresident alien is temporarily in the United States as a student, trainee, or apprentice." For code 19, it says most treaties exempt teaching or research pay for a specified period when paid to a visiting professor, teacher or researcher. To get the exemption through payroll, you give the payer Form 8233 for pay. Per the Form 8233 instructions, it can cover a scholarship too only if you also claim a treaty exemption on pay from the same payer; otherwise a scholarship treaty claim goes on Form W-8BEN.

China's Article 20 exempts up to $5,000 a year of personal-service income, and our guide to the China-US tax treaty $5,000 student exemption walks through it. India's Article 21, per Publication 901, has no $5,000 wage exemption. It exempts payments from abroad and lets eligible students claim the standard deduction ($16,100 for 2026, single), as our India-US tax treaty guide for students explains.

Exemption codes and tax rates: reading boxes 3a and 3b

Box 3a gives the reason for a reduced or zero rate and box 3b shows the rate, so together they show how the payer treated the money.

New on the 2026 forms you will receive in 2027: "A chapter 3 exemption code is now required in all cases where the tax withheld is less than 30%." The instructions use the student case as their example: a 14% scholarship must carry exemption code 02. Box 4a holds the separate chapter 4 (FATCA) code, such as 15 or 16 ("excluded nonfinancial payment"), which rarely changes anything on your return.

The other boxes to check before you file

• Box 2, gross income: the full amount paid, including tax withheld.
• Boxes 5 and 6: a withholding allowance and the net income after it, used only when a treaty exempts income up to a set amount.
• Box 7a, federal tax withheld, and box 10, total withholding credit. The Instructions for Form 1040-NR say: "The withholding credit should be shown in box 10 of your Form(s) 1042-S."
• Box 13b, country code: the country where you claim tax residence. With exemption code 04, it must be a treaty country.
• Box 13i, US TIN: your SSN or ITIN. The instructions generally require one for treaty claims, and on any 1042-S "used by a recipient to claim credit for (or a refund of) the withholding."

1042-S vs W-2: do you get both?

Often, yes. Taxable wages go on a W-2, and the 1042-S instructions keep wages off the 1042-S except "compensation for dependent personal services for which the beneficial owner is claiming treaty benefits." So a treaty-exempt slice of your wages moves to the 1042-S and the rest stays in W-2 box 1, the split the 2025 1040-NR instructions show for a French F-1 intern.

Three things the split does not change:

• FICA. The 1042-S has no Social Security or Medicare boxes. Nonresident F-1, J-1 and M-1 students are exempt on allowed work under IRC 3121(b)(19), as the IRS foreign-student FICA page explains, whichever form reports the pay.
• State tax. Pub 515 says treaty-exempt wages may still be reported in the state and local wages boxes of the W-2 when state tax applies. California's FTB Publication 1031 says that unless a treaty "specifically excludes the income from taxation by California, the income is taxable."
• Your residency. A 1042-S is issued on the basis that you are a nonresident. Once you have been an exempt student for any part of 5 calendar years, your days generally start counting toward the substantial presence test, so you may become a resident filing Form 1040, or have a split year; see our guide to the dual-status tax return in your first or last US year.

Is 1042-S income taxable?

Not automatically. The form reports taxable and treaty-exempt income alike, and boxes 3a and 3b show which treatment the payer applied. Your Form 1040-NR decides the final tax; 1042-S withholding is a credit against it.

Treaty-exempt income is still reported. Schedule OI item L lists the country, treaty article, months claimed in prior years and the exempt amount, and line 1k carries the total. What you do not need for a student claim is Form 8833. IRS Publication 519 lists treaty claims on the income of "students, trainees, or teachers" among the exceptions and adds, "This includes taxable scholarship and fellowship grants."

How to file a Form 1042-S with your 1040-NR, step by step

You never file a 1042-S on its own. You carry its numbers onto your return and attach a copy.

1. Collect every Form 1042-S and W-2 from every payer. 2026 forms are due to you by March 15, 2027.
2. Check box 1, boxes 3a and 3b, box 10, box 13b and box 13i against your pay stubs and award letter, and ask the issuing office to correct anything wrong.
3. Confirm your residency for 2026 with the substantial presence test in Publication 519, and prepare Form 8843 to exclude your exempt-individual days.
4. Enter taxable code 16 scholarship income on Schedule 1 (Form 1040), line 8r.
5. List treaty-exempt amounts from codes 16 to 20 on Schedule OI, item L, and carry the total to Form 1040-NR line 1k.
6. Report W-2 box 1 wages on line 1a, W-2 withholding on line 25a, and 1042-S box 10 withholding on line 25g.
7. Attach your Forms 1042-S and W-2 to the front of the Form 1040-NR.
8. File by April 15, 2027 if you had wages with tax withheld, otherwise by June 15, 2027 (our arithmetic; the 2026 instructions are not posted yet).

Worked example: two students, tax year 2026

The students and amounts are illustrations, and the withholding figure is our arithmetic.

Ananya's fellowship comes from a US source, so Article 21's exemption for payments from abroad does not reach it. Both file Form 8843, and both wait for the 1042-S before filing.

Common mistakes

• The same treaty dollars on both forms. If $5,000 shows on your 1042-S and is also inside W-2 box 1, your federal income is double counted. Ask payroll; a W-2 error is fixed with a Form W-2c.
• A missing withholding credit. Box 7a or 10 is blank although tax was taken, or box 10 never reaches line 25g. Either way you overpay, and the 1040-NR instructions warn that 1042-S refunds "may be delayed for up to 6 months."
• Adding tuition to income. A degree candidate's qualified scholarship for tuition and required fees is not on the 1042-S and is not income.
• Claiming a scholarship treaty exemption against W-2 pay. Pub 515 is blunt: "An alien student, trainee, or researcher may not claim a scholarship or fellowship treaty exemption against income that has been reported to them on Form W-2 as wages."
• Filing before the form arrives. Payers have until March 15, 2027, plus any extension. Near April 15, ask a tax professional about Form 4868 (Pub 519: an automatic 6-month extension to file, not to pay) rather than guessing figures.

What to ask payroll to correct (as of November 2026)

If the payer already filed with the IRS, the 2026 instructions require an amended 1042-S with the Amended box checked and an amendment number; if not, it issues a corrected original with no Amended box. Either way, "All copies must match the copy filed with the IRS," and the IRS may disallow a credit claimed on a form that differs.

Frequently asked questions

What is Form 1042-S for international students?

It is the IRS information return a US payer, usually a university, uses to report certain income paid to a nonresident alien and any tax withheld. Students usually get one for the taxable part of a scholarship or fellowship (code 16) or for treaty-exempt pay (codes 18, 19 or 20). For 2026 payments, payers must furnish it by March 15, 2027, and may ask the IRS for one 30-day extension.

What does income code 16 mean on a 1042-S?

Code 16 is scholarship or fellowship grants, usually the stipend, housing or travel part of an award that is not payment for work. Tuition and required fees for a degree candidate are not reported. F, J, M and Q students usually see a 14.00 rate with exemption code 02, or 00.00 with code 04 when a treaty exempts the grant. On the 2025 Form 1040-NR, the taxable part goes on Schedule 1 line 8r and a treaty-exempt part on line 1k.

Do I get both a W-2 and a 1042-S?

You can. Taxable wages go on the W-2; treaty-exempt wages and scholarship or fellowship income go on the 1042-S. A Chinese student who filed Form 8233 and earned $26,000 could see $5,000 on a 1042-S under China Article 20 and $21,000 in W-2 box 1. Each federal dollar should appear on only one of the two forms.

Is 1042-S income taxable?

Not necessarily. Read boxes 3a and 3b together. A 00.00 rate with exemption code 04 means a treaty exempted the payment, which you still report on line 1k and Schedule OI item L. A 14.00 rate with code 02 means taxable scholarship income with 14% already withheld. Your Form 1040-NR settles the final tax.

What if my 1042-S is wrong or missing?

Ask the issuing office, usually payroll or the international tax office, before you file. A payer that already filed with the IRS sends an amended 1042-S (Amended box checked, with an amendment number), and a W-2 error needs a Form W-2c. If a 2026 form is missing after March 15, 2027, the payer may have an extension, so check with them and a tax professional before filing without it.

Sources

• IRS, Instructions for Form 1042-S (2026)
• IRS, Instructions for Form 1040-NR (2025)
• IRS, draft 2026 Form 1040-NR (DRAFT - DO NOT FILE)
• IRS, Publication 515 (2026), Withholding of Tax on Nonresident Aliens and Foreign Entities
• IRS, Publication 519 (2025), U.S. Tax Guide for Aliens
• IRS, Publication 901, U.S. Tax Treaties
• IRS, Instructions for Form 8233
• IRS, Foreign student liability for Social Security and Medicare taxes
• California FTB, Publication 1031 (2025)

How we checked this: on 2026-11-02 we read the 2026 Form 1042-S instructions, the 2025 Form 1040-NR instructions, Publications 515 (2026), 519 (2025) and 901, the Form 8233 instructions and FTB Publication 1031 on the agencies' own sites. Line numbers can change when the 2026 Form 1040-NR is final.

This is general information, not legal or tax advice. Your own forms, a tax professional who handles nonresident returns, and your DSO for anything touching F-1 work authorization govern your situation.

Getting these forms right is one less thing to carry while you job hunt on OPT or STEM OPT. If you are looking for an employer that sponsors H-1B, F1Jobs helps international candidates run a focused search.