Foreign Shareholders' US Source Income (Mailed in mid-March)
Form 1042-S is your record of all distributions, including dividends, short-term capital gains, long-term capital gains and/or return of capital, and redemptions from accounts owned by nonresident aliens or representatives of foreign entities.
Distributions are identified by the appropriate income code. See the back of Form 1042-S for a list of income codes and their descriptions.
This form also reports the amount of federal tax withheld from distributions because of the nonresident alien status. The withholding rate, which is determined by the IRS, is based on the country of tax residence and Invesco's receipt of a Certificate of Foreign Status (Form W-8).
Your Questions Answered
Your Form W-8 verifies your nonresident alien status and verifies that you are exempt from certain backup withholding rules. If your Form W-8 is not on file with Invesco or has expired, your account may be subject to backup withholding. You will receive a Form 1042-S plus a Form 1099-DIV that reports the backup withholding and possibly a Form 1099-B if you had any redemptions or exchanges in your account.
You can file Form 1040-NR if too much nonresident alien tax was withheld. This is the tax return filed with the IRS by nonresident aliens. You must have an individual taxpayer identification number. You may obtain one by filing Form W-7.