Disclaimer: This content is intended for general informational purposes only and should not be construed or relied upon as tax, legal or financial advice, or applicable to your particular situation. You should consult with your own tax advisor regarding your tax obligations. The views expressed in any of these resources do not represent the views and are not affiliated with or endorsed by Vrbo or Expedia Group in any way.

 

What is Form 1042-S?

Form 1042-S – Foreign Person’s U.S. Source Income Subject to Withholding - is an information return required by the Internal Revenue Service (IRS), the United States (U.S.) federal tax administrator.

What is the purpose of Form 1042-S?

Form 1042-S is used to report a foreign person’s U.S. source income and any federal income tax withheld. Income from U.S. sources paid to foreign persons is required to be reported on Form 1042-S even if no federal taxes have been withheld.

Why did I receive Form 1042-S?

Form 1042-S is sent to hosts when the following criteria (or requirements) are met:

  • You identified as a non-U.S. (i.e., foreign) person during payments onboarding
  • You listed a property located in the U.S., and
  • You accepted payments through the Vrbo payment platform

The IRS requires we collect certain information from owners to determine if earnings are subject to U.S. tax reporting. We do this by confirming the name, citizenship, and primary address of the bank account owner when signing up for online payments. We are required to do this when a U.S. property is listed on our site or payouts occur in U.S. Dollars.

Our policy is to collect tax status information upfront, during payments onboarding, to make required tax filings and streamline the payments process. Any information you provide is securely stored.

After your application for online payments, you may receive an email to complete your tax profile.

What is withholding?

Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%, although a reduced rate, including exemption, may apply in certain circumstances.  The tax is generally withheld (NRA withholding) from the payments made to the foreign person.

For more information about withholding see:

When is Form 1042-S sent?

Vrbo will mail Form 1042-S to you by March 15th of each year for payments collected the previous calendar year.

  • For Tax Year 2024, Vrbo will mail all Forms 1042-S.
  • For Tax Year 2025, Vrbo will provide electronic delivery (same delivery date) if you selected this option in your tax profile. We highly recommend choosing electronic delivery.

What do I do with Form 1042-S?

For guidance on what to do with your 1042-S, consult with your local tax advisor.

 

IRS resources