Education & FAQs

Understanding Form 1042-S
Why did I receive a Form 1042-S? I thought reporting was generally done on Form 1099? Show
You will receive a Form 1042-S if you are a Non-Resident Alien (NRA) investor. You will only receive Form 1099 if you are a U.S. Citizen or U.S. resident alien.
Why did I receive multiple 1042-S Forms from my NRA account? Show
You will receive a Form 1042-S for each fund in which you have an investment. Additionally, you may receive more than one Form 1042-S depending on the income type in Box 1 (i.e. dividend or capital gains).
What IRS Forms do I have to complete to qualify for the lower treaty rate of the country that I reside in? Show
A properly completed form W-8BEN will qualify you for the treaty rate or exemption from tax withholding. Failure to provide a form W-8BEN when requested may lead to a higher withholding rate. For more information, please call our Shareholder Services Representatives at 800-422-1050, Monday through Friday, from 8:00 a.m. to 6:00 p.m. Eastern time.
Does a properly completed form W-8BEN mean that I will be entitled to the treaty (or exemption) rate indefinitely? Show
Generally, a form W-8BEN provided "without" a U.S. taxpayer identification number (TIN) will remain in effect for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a form W-8BEN signed on November 10, 2011, will remain valid through December 31, 2014.
What form should I complete to obtain indefinite tax treaty rates? Show
If you do not have an SSN and are not eligible to get one, you must get an individual taxpayer identification number (ITIN). To apply for an ITIN, file Form W-7 with the IRS. A form W-8BEN furnished with a U.S. TIN will remain in effect until a change in circumstances makes any information on the form incorrect.
Where can I review the effective tax rates for the country that I am residing in? Show
The withholding tax rates for Non-Resident Aliens are listed in IRS Publication 515 for all countries that have a treaty with the U.S.
Is it necessary to withhold and remit taxes to the IRS on my Form 1042-S? Show
If an individual has certified that he or she is a Non-Resident Alien, he or she is then generally subject to a 30% withholding rate. However, some countries have entered into treaties with the U.S. that entitle residents of those countries to reduced rates of income tax withholding or an exemption from tax withholding.