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.