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.
To work out the codes for one payment, use the chapter 3 and FATCA withholding calculator.
Interest
01Interest paid by U.S. obligors, general
The default code for interest: U.S.-source interest that no more specific interest code covers. The instructions also send exempt-interest dividends and interest-related dividends paid by a mutual fund here, with chapter 3 exemption code 02. Bank deposit interest has its own code, 29.
Source: Instructions for Form 1042-S (2026), box 1
02Interest paid on real property mortgages
Interest on any debt secured by a mortgage or deed of trust on real property in the United States, whoever the borrower is. It has its own code because some treaties set a separate rate or exemption for mortgage interest. Excess inclusions from a REMIC are also reported under code 02.
Source: Publication 515; Instructions for Form 1042-S (2026), amounts subject to reporting
03Interest paid to controlling foreign corporations
Interest paid to a foreign corporation that controls the payer. Publication 515 lists it as its own category because some treaties apply a different rate or exemption to it, so check the interest article of the treaty before applying the general interest rate.
Source: Publication 515
04Interest paid by foreign corporations
U.S.-source interest paid by a foreign corporation, for example interest paid by the U.S. branch of a foreign company. Treaty benefits on this interest follow special rules for branch interest; Publication 515 covers them.
Source: Publication 515
05Interest on tax-free covenant bonds
Interest on a tax-free covenant bond: a bond whose issuer agreed to pay the holder's income tax on the interest. IRC 1451 governs these bonds, which were issued before 1934; few remain outstanding.
Source: IRC 1451; Instructions for Form 1042-S (2026), Appendix A
22Interest paid on deposit with a foreign branch of a domestic corporation or partnership
Interest on a deposit held at a foreign branch of a U.S. corporation or partnership. For chapter 4 (FATCA) purposes this interest is treated as U.S.-source, which is why it can appear on Form 1042-S.
Source: Publication 515, chapter 4
29Deposit interest
Bank deposit interest. The instructions say to use 29, not 01, for it. Deposit interest that is not effectively connected with a U.S. business is not subject to chapter 3 withholding, but it must still be reported for a nonresident alien individual resident in a country listed in Rev. Proc. 2024-42 when it totals $10 or more; that reporting uses exemption code 02. It is also a withholdable payment under chapter 4.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting and box 1
30Original issue discount (OID)
Original issue discount on a long-term debt instrument. On a redemption, report the OID actually includible in the foreign owner's income if you know it; otherwise report the full OID as if the owner had held the instrument since issue. Publication 1212 explains OID.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting
31Short-term OID
OID on an obligation payable in 183 days or less. Short-term OID is generally neither reportable nor subject to withholding; the code exists for the cases that are, for example an intermediary reporting amounts on which another withholding agent applied backup withholding under the presumption rules.
Source: Instructions for Form 1042-S (2026), box 1 note
33Substitute payment, interest
A substitute interest payment: an amount paid in place of interest under a securities loan or sale-repurchase transaction. The withholding agent and a QI that assumes primary withholding responsibility for substitute interest use 33 or 54.
Source: Instructions for Form 1042-S (2026), box 1; Treas. Reg. 1.861-2(a)(7)
51Interest paid on certain actively traded or publicly offered securities (treaty rate applied without a U.S. TIN or FTIN)
Interest on actively traded or publicly offered securities, used only when a treaty rate was applied without the recipient giving a U.S. TIN or a foreign TIN. The no-TIN treaty claim is allowed only for the income listed in Treas. Reg. 1.1441-6(c)(2): actively traded stocks and debt, mutual fund shares, publicly offered unit investment trusts, and loans of those securities.
Source: Instructions for Form 1042-S (2026), Appendix A note 1
54Substitute payments, interest from certain actively traded or publicly offered securities
A substitute interest payment on the same actively traded or publicly offered securities as code 51, again only where the treaty rate was applied without a U.S. or foreign TIN.
Source: Instructions for Form 1042-S (2026), Appendix A note 1
Dividends
06Dividends paid by U.S. corporations, general
The general dividend code: dividends from U.S. corporations, including deemed dividends such as those under IRC 305(c). Dividends on actively traded securities paid at a treaty rate without a TIN (52) and dividend equivalents (34, 40, 53, 56) use their own codes.
Source: Instructions for Form 1042-S (2026), box 1
07Dividends qualifying for direct dividend rate
Dividends that qualify for a treaty's direct dividend rate: the lower rate many treaties give a company that owns a minimum share of the paying corporation. The share and holding-period conditions are in each treaty's dividend article.
Source: Instructions for Form 1042-S (2026), Appendix A; treaty dividend articles
08Dividends paid by foreign corporations
Dividends paid by a foreign corporation that are treated as U.S.-source, which happens when a large share of the corporation's income is effectively connected with a U.S. business. No withholding applies to dividends paid out of earnings for a year in which the corporation paid the branch profits tax.
Source: Publication 515, dividends; IRC 861(a)(2)(B)
34Substitute payment, dividends
A substitute dividend: an amount paid in place of a U.S. dividend under a securities loan or sale-repurchase transaction. Substitute dividends are dividend equivalents under IRC 871(m).
Source: Instructions for Form 1042-S (2026), box 1 and dividend equivalents
40Other dividend equivalents under IRC section 871(m)
A dividend equivalent under IRC 871(m) other than a substitute dividend or a combined transaction: a payment on a notional principal contract or equity-linked instrument that references a U.S. dividend. It is measured gross, so there can be a reportable payment even when no cash changes hands.
Source: Instructions for Form 1042-S (2026), dividend equivalents; Treas. Reg. 1.871-15
52Dividends paid on certain actively traded or publicly offered securities
Dividends on actively traded or publicly offered securities, used only when a treaty rate was applied without a U.S. or foreign TIN (see code 51).
Source: Instructions for Form 1042-S (2026), Appendix A note 1
53Substitute payments, dividends from certain actively traded or publicly offered securities
A substitute dividend on actively traded or publicly offered securities, again only where a treaty rate was applied without a U.S. or foreign TIN.
Source: Instructions for Form 1042-S (2026), Appendix A note 1
56Dividend equivalents under IRC section 871(m) as a result of applying the combined transaction rules
A dividend equivalent arising from a transaction that is an IRC 871(m) transaction only because it was combined with other transactions under Treas. Reg. 1.871-15(n).
Source: Instructions for Form 1042-S (2026), box 1
Royalties
10Industrial royalties
Royalties for industrial property: patents, industrial processes and formulas, know-how and similar rights. Many treaties set different rates for industrial and copyright royalties, which is why they are separate codes.
Source: Instructions for Form 1042-S (2026), Appendix A; treaty royalty articles
11Motion picture or television copyright royalties
Royalties for the use of motion picture or television copyrights. Several treaties treat film and television royalties differently from other copyright royalties.
Source: Instructions for Form 1042-S (2026), Appendix A; treaty royalty articles
12Other royalties (for example, copyright, software, broadcasting, endorsement payments)
All other royalties, including copyright, software, broadcasting and endorsement payments. This is the usual code for a software or content license to a foreign company.
Source: Instructions for Form 1042-S (2026), Appendix A
13Royalties paid on certain publicly offered securities
Royalties on units of a publicly offered unit investment trust, used only when a treaty rate was applied without a U.S. or foreign TIN (see code 51).
Source: Instructions for Form 1042-S (2026), Appendix A note 1
Services and grants
16Scholarship or fellowship grants
The taxable part of a scholarship or fellowship grant. Withholding is 14% for a holder of an F, J, M or Q visa and 30% otherwise, unless a treaty exempts it; amounts excluded under IRC 117 are not reported. A U.S. address may be used for the recipient on this code.
Source: Instructions for Form 1042-S (2026), boxes 13c to 13h; Publication 515
17Compensation for independent personal services
Pay for independent personal services performed in the United States by a foreign person, including fees paid to a company and payments covered by a treaty's business profits article. An individual claims a treaty exemption on Form 8233. Services performed entirely outside the United States are foreign-source and are not reported.
Source: Instructions for Form 1042-S (2026), box 1
18Compensation for dependent personal services
Wages and other pay of a foreign employee for work in the United States. They belong on Form 1042-S only when the employee claims a treaty benefit; otherwise they go on Form W-2.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting
19Compensation for teaching
Pay to a foreign teacher or researcher. Many treaties exempt it for a limited period under a teachers article. If the pay comes from work as an artist or athlete, use 42 or 43 instead.
Source: Instructions for Form 1042-S (2026), Appendix A note 2; Publication 515
20Compensation during studying and training
Pay received while studying or training in the United States, often exempt up to a limit under a treaty's student or trainee article. Artists and athletes use 42 or 43 instead.
Source: Instructions for Form 1042-S (2026), Appendix A note 2; Publication 515
42Earnings as an artist or athlete, no central withholding agreement
Pay to an artist or athlete for U.S. performances where there is no central withholding agreement. Use it instead of 17 to 20 when the pay comes from the person's work as an artist or athlete, with recipient status code 22.
Source: Instructions for Form 1042-S (2026), box 1 and Appendix A note 5
43Earnings as an artist or athlete, central withholding agreement (only if Letter 4492 was issued)
Pay to an artist or athlete under a central withholding agreement, which is entered into on Form 13930 by the performer, a designated withholding agent and the IRS. Use it only if the IRS issued Letter 4492; the designated withholding agent enters a rate in box 3b and chapter 4 exemption code 16.
Source: Instructions for Form 1042-S (2026), box 1, boxes 3b and 4b, Appendix A note 5
Other
09Capital gains
Only certain capital gains belong on Form 1042-S, because most gains of a foreign person are not FDAP income. The code covers gains on timber, coal or domestic iron ore with a retained economic interest; contingent payments from selling patents, copyrights, formulas, goodwill, trademarks, franchises and similar property; and certain gains on OID obligations.
Source: Instructions for Form 1042-S (2026), box 1
14Real property income and natural resources royalties
Rent from U.S. real property and royalties from U.S. natural resources such as oil, gas and minerals. Withholding is 30% of the gross unless the owner elects to be taxed on a net basis and gives a Form W-8ECI.
Source: Instructions for Form 1042-S (2026), Appendix A; Publication 515
15Pensions, annuities, alimony, and/or insurance premiums
Pensions, annuities, alimony and insurance premiums. Treaties often limit tax on pensions to the country of residence. Premiums on insurance with cash value are withholdable payments under chapter 4.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting
23Other income (only U.S.-source FDAP income not reportable under any other code)
Other income. The instructions allow it only for U.S.-source FDAP income that fits no other code; it is not a catch-all for convenience.
Source: Instructions for Form 1042-S (2026), box 1
24Qualified investment entity (QIE) distributions of capital gains
A distribution by a REIT or a RIC that is a U.S. real property holding corporation, to the extent it comes from the entity's gain on U.S. real property. It is treated as the shareholder's own real property gain and withheld at 21%. Small holders of listed stock, qualified shareholders of REITs and qualified foreign pension funds are generally outside this rule.
Source: Instructions for Form 1042-S (2026), QIEs
25Trust distributions subject to IRC section 1445
A distribution by a publicly traded trust attributable to the sale of U.S. real property, withheld under IRC 1445. The withholding duty can shift from the trust to the person who pays the distribution to the foreign holder.
Source: Instructions for Form 1042-S (2026), publicly traded trusts; Treas. Reg. 1.1445-8
26Unsevered growing crops and timber distributions by a trust subject to IRC section 1445
A distribution by a trust subject to IRC 1445 that is attributable to unsevered growing crops and timber, which are treated as part of U.S. real property for this purpose.
Source: Instructions for Form 1042-S (2026), Appendix A
27Publicly traded partnership distributions subject to IRC section 1446(a)
A distribution by a publicly traded partnership to a foreign partner that is subject to withholding under IRC 1446(a). A nominee that holds the interest for the foreign partner also withholds and reports.
Source: Instructions for Form 1042-S (2026), publicly traded partnerships
28Gambling winnings
Gambling winnings, other than from blackjack, baccarat, craps, roulette and big-6 wheel, which are not reportable. Withholding is 30% unless the winner is from a treaty country listed in Publication 515.
Source: Instructions for Form 1042-S (2026), box 1 and Appendix A note 3
32Notional principal contract income
Income from a notional principal contract, reported only when it is effectively connected with a U.S. business. The amount is the cash paid during the year. Interest arising from a significant nonperiodic payment goes under an interest code, and dividend equivalents under 40 or 56.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting
35Substitute payment, other
A substitute payment under a securities loan or sale-repurchase transaction that is neither substitute interest nor a substitute dividend.
Source: Instructions for Form 1042-S (2026), box 1
36Capital gains distributions
Capital gain dividends paid by a mutual fund or other regulated investment company, long-term and short-term, reported with chapter 3 exemption code 02.
Source: Instructions for Form 1042-S (2026), box 1
37Return of capital
A return of capital: a distribution not paid out of the corporation's earnings and profits. Use chapter 4 exemption code 21 with it. A corporate distribution is still reported in full regardless of any estimate of the dividend part.
Source: Instructions for Form 1042-S (2026), box 1 and boxes 3a and 4a
38Eligible deferred compensation items subject to IRC section 877A(d)(1)
Eligible deferred compensation paid to a covered expatriate, subject to 30% withholding under IRC 877A(d)(1). Notice 2009-85 explains the rules.
Source: Instructions for Form 1042-S (2026), box 1; Publication 515
39Distributions from a nongrantor trust subject to IRC section 877A(f)(1)
A distribution from a nongrantor trust to a covered expatriate, subject to withholding under IRC 877A(f)(1).
Source: Instructions for Form 1042-S (2026), box 1; Notice 2009-85
41Guarantee of indebtedness
A fee for guaranteeing debt issued after September 27, 2010. It is U.S.-source when paid by a U.S. corporation or a noncorporate U.S. resident, or by a foreign person if effectively connected with its U.S. business.
Source: Instructions for Form 1042-S (2026), amounts subject to reporting; Publication 515
44Specified federal procurement payments
A specified federal procurement payment: a payment by the U.S. government to a foreign person under a procurement contract, subject to a 2% tax under IRC 5000C. It is reported in box 3b at 02.00 as if it were chapter 3 tax.
Source: Instructions for Form 1042-S (2026), boxes 3b and 4b
50Income previously reported under escrow procedure
Income reported in an earlier year whose withheld tax was held back under an escrow procedure and is deposited this year: dormant accounts under Treas. Reg. 1.1471-4(b)(6), or undetermined amounts under Treas. Reg. 1.1441-3(d)(1).
Source: Instructions for Form 1042-S (2026), box 1
55Taxable death benefits on life insurance contracts
Taxable death benefits under a life insurance contract, such as benefits on a policy acquired by transfer for value. IRC 101 says when death benefits are taxable.
Source: Instructions for Form 1042-S (2026), box 1
57Amount realized under IRC section 1446(f)
The amount realized on a transfer of an interest in a publicly traded partnership (or a PTP distribution) subject to withholding under IRC 1446(f). A broker reports the total for each recipient with chapter 4 exemption code 14.
Source: Instructions for Form 1042-S (2026), box 1 and publicly traded partnerships
58Publicly traded partnership distributions, undetermined
A publicly traded partnership distribution whose income character cannot be determined because no qualified notice was received, withheld under Treas. Reg. 1.1446-4(d)(1).
Source: Instructions for Form 1042-S (2026), box 1
59Consent fees (optional for 2026)
Consent fees, optional for 2026. Use it only when the payment fits no other code apart from 23.
Source: Instructions for Form 1042-S (2026), box 1
60Loan syndication fees (optional for 2026)
Loan syndication fees, optional for 2026. Use it only when the payment fits no other code apart from 23.
Source: Instructions for Form 1042-S (2026), box 1
61Settlement payments (optional for 2026)
Settlement payments, optional for 2026. Use it only when the payment fits no other code apart from 23.
Source: Instructions for Form 1042-S (2026), box 1