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Spogy(Newbie)Newbie
5 Oct 2021

Hi I earn royalties in the USA. I am paid via PAYPAL Australia in Aus $. I have filled out a W-8Ben form and believe because Aus has a treaty with USA I only have to pay 5% withholding tax. I have declared my PayPal Aus income as USA Royalties in my AUS tax return. BUT. I have just received a 1042-S Form for 'Foreign Person's US Source Income subject to withholding' and i'm not sure if i was supposed to hand this in to my tax agent. It was for the 2019/20 tax year which has already been submitted last year. I've contacted the US and they assure me that i only need to keep it for my records. Can anyone give me some advice please.

7,944 views
1 replies
7,944 views
1 replies

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Most helpful reply

EthanATO(Community Support)Community Support
7 Oct 2021

Hi @Spogy, After looking into this a little for you your tax agent may not need this from you. These forms are used by US based businesses to report payments made to foreign entities or people. They lodge them with the IRS and are required to send you a copy. It's essentially a summary of what they've paid you and any amounts withheld from the payment. As long as the information you lodged in your Australian tax return won't change based on what they've sent you, your tax agent shouldn't need this as no adjustments would be required. You may wish to contact your tax agent to discuss if they wish to view it.

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Most helpful reply

EthanATO(Community Support)Community Support
7 Oct 2021

Hi @Spogy, After looking into this a little for you your tax agent may not need this from you. These forms are used by US based businesses to report payments made to foreign entities or people. They lodge them with the IRS and are required to send you a copy. It's essentially a summary of what they've paid you and any amounts withheld from the payment. As long as the information you lodged in your Australian tax return won't change based on what they've sent you, your tax agent shouldn't need this as no adjustments would be required. You may wish to contact your tax agent to discuss if they wish to view it.

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Do i need to show 1042-S Form to Tax Agent? | ATO Community