Freedom Finance Global PLC clients may use 1042-S Form (available in English only) for tax reporting.
The form reflects the investor's income from securities of US companies:
1. Stock dividend;
2. Bond coupons;
3. Equivalents of the above income.
However, 1042-S shows only the total income of a certain type and does not contain information about income on securities of individual issuers. For these purposes, you may use the broker's report.
The form is developed by the US Internal Revenue Service (IRS), a government agency of the US Federal Government that monitors tax collection and compliance with tax laws.
Individual 1042-S forms are received by investors who are not U.S. citizens, residents, or tax residents but have received payments from U.S. sources.
Individual 1042-S forms report only income whose cutoff date fell during the period when the client had a valid W-8BEN or W-8BEN-E form on file with the broker. A separate 1042-S form is filed out for each type of income and/or applicable tax rate. Each 1042-S form is prepared in five copies.
Other income whose cut-off date did not fall during a period in which clients had valid W-8BEN or W-8BEN-E forms is reported on Unified 1042-S Forms, which report the aggregate amount of such income without identifying individual recipients.
How to use 1042-S form
The form is useful because it allows citizens of some countries to receive a credit for the U.S. income taxes against their country's individual or corporate income taxes.
IMPORTANT: Under the current tax law, 1042-S form does not provide this right to tax residents of Kazakhstan.
How to download 1042-S form
To obtain 1042-S form, log into the web version of the Freedom Broker trading platform. Open Freedom Broker platform website on your computer and log in.
Next, go to the “Member Area – 1042-S Form” section.
Select the year for which you want to view the form and click “Show”. Or download the PDF file.
1042-S form reporting period
1042-S form reporting is generally available to clients no later than June 15th each year.