Search all codes at once in the Form 1042-S code finder. Every explanation below is our summary of the IRS instructions and the rule each code points to.
Which payments are withholdable at all is covered in the FATCA guide for payers.
The codes
13Grandfathered payment
A payment on a grandfathered obligation, as defined in Treas. Reg. 1.1471-2(b)(2). Use it only if no other chapter 4 code applies.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a
14Effectively connected income
The income is effectively connected with a U.S. trade or business and so is not a withholdable payment. As with chapter 3 code 01, the recipient's U.S. TIN is required. A broker reporting an amount realized under IRC 1446(f) also uses 14.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a and publicly traded partnerships
15Payee not subject to chapter 4 withholding
The payment is a withholdable payment, but the payee's chapter 4 status means no chapter 4 withholding, for example an active NFFE or a participating FFI. Also use 15 when applying the 90-day grace period after a change in circumstances.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a
16Excluded nonfinancial payment
An excluded nonfinancial payment under Treas. Reg. 1.1473-1(a)(4)(iii), so not a withholdable payment: pay for services, the use of property including office and equipment leases, software licenses, transportation, freight, gambling winnings, awards, prizes, scholarships, and interest on accounts payable for goods or services. Use it only if no other chapter 4 code applies.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a; Treas. Reg. 1.1473-1(a)(4)(iii)
17Foreign Entity that assumes primary withholding responsibility
The payment went to a qualified intermediary that assumes primary withholding responsibility, a withholding foreign partnership or a withholding foreign trust, which applies chapter 4 itself.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a
18U.S. payees of participating FFI or registered deemed-compliant FFI
The payment went to a participating or registered deemed-compliant FFI and, as its withholding statement shows, is allocated to its pool of U.S. payees; the FFI certified that it may include those account holders in a U.S. payee pool.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a
19Exempt from withholding under IGA
An intergovernmental agreement exempts the payment. The instructions limit it to reporting a U.S. reportable account or nonconsenting U.S. account that receives a payment subject to chapter 3 withholding.
Source: Instructions for Form 1042-S (2026), Appendix B note 8
20Dormant account
A withholdable payment to a participating or registered deemed-compliant FFI, allocated on its withholding statement to a dormant account to which the escrow procedure of Treas. Reg. 1.1471-4(b)(6) applies.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a and Appendix B note 9
21Other payment not subject to chapter 4 withholding
The payment is exempt from chapter 4 withholding and no other code fits. It is also the code to use with income code 37 for a return of capital.
Source: Instructions for Form 1042-S (2026), boxes 3a and 4a