If you are an investor in Hapi and a non-U.S. resident, it is important to understand Form 1042-S, as this document reflects the taxes withheld on your U.S. income, such as dividends and other earnings.
What is Form 1042-S?
The Form 1042-S is a document issued by Apex Clearing Firm, summarizing the details and amounts of taxes that were withheld and paid on your behalf to the U.S. tax authority (IRS) throughout the year.
What is this form used for?
It reports the income earned in the U.S. and the taxes withheld.
It can be used for your tax declaration in your country of residence to demonstrate taxes paid in the U.S.
It is issued in mid-March for the previous year and is available in the Hapi app under Reports > Taxes > Download “Tax” document. It has also been sent to your registered email.
📌 Important: Generally, non-U.S. resident investors are not required to file a tax return in the U.S. However, we recommend consulting a local tax advisor to understand how to report these earnings in your country.
What information is included in Form 1042-S?
The form contains several key sections:
Box 2: Shows the total amount of income earned.
Box 3b and 4b: Indicate the percentage of taxes withheld.
Box 7a: Displays the total amount of tax withheld.
Example of Tax Withholding
A 30% tax withholding applies to your dividends (reported under Code 6 in the document). This amount has been paid directly to the U.S. Internal Revenue Service (IRS).
For example, if you received $100 in dividends, a 30% tax was withheld, meaning that $30 was paid to the IRS, and $70 was deposited into your account.
📢 Note: Hapi does not provide tax advisory services. This information is for informational purposes only. If you have any questions about your taxes, consult a tax specialist in your country.
If you have more questions about your Form 1042-S, contact us through the Hapi app. We are here to help!