The North Carolina Department of Revenue recently released specifications for reporting Form 1042-S information through the eNC3 web portal. These specifications are effective beginning on January 1, 2018, and reporting of Form 1042-S data is due on January 31, 2018 for TY 2017. Please note this is earlier than the federal due date for Form 1042-S, which is March 15, 2018 for TY 2017.
North Carolina requires reporting of 1042-S information if the information includes:
- North Carolina income tax withholding, or;
- Income information other than interest and dividend, which is North Carolina source income.
Considering the various types of income that can be reported on Form 1042-S, the taxpayer must make a determination on a case-by-case basis if a particular income item should be considered North Carolina source income.
North Carolina does not require 1042-S information if:
- The information reported is interest and/or dividend income, and;
- There are no North Carolina income tax withholdings, and;
- The interest and dividend payments have been reported to the IRS.
North Carolina will release additional information on 1042-S reporting in the coming months.
About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa