I'm an F-1 student, and I filed the form 1040NR-EZ. I entered the amount on my form 1042-S when filing out the form 1040NR-EZ used to calculate my taxes. The IRS reply came in the mail that said I owed them the amount calculated from my 1042-S.
The problem is that my college said I owe them the federal tax withheld showing on my form 1042-S. It just seems to me that I would be paying the tax twice, and it doesn't sound right.

I talked to the school and they said it's the new rule. Do I talk to the IRS now, or what should I do?

How much income did you have and report?

The Gross income on my form 1042-S was $12,440 which incurred a $1,742 (line 7 on the form 1042-S) federal tax at a 14% tax rate. The school said I owe them the $1,742.

I entered the $12,440 on line 5 of my form 1040NR-EZ.

I reported an income of $15,281 in line 3 the form 1040NR-EZ.

Thanks.

I don't think it is possible to answer your question unless you give all the information.

1. Your citizenship and when did you enter the U.S. on F1? This is to figure out your deductions.
2. About 10402-S; Info on box 1, 2, 6, and 7
3. Any other income with details.
4. On your form 1040NR-EZ, what is on all the lines, specially lines 3, 14, 17 and 18 and other lines?

1. You had $15,281 on line 3. Is it income other than 1042-S income?
2. You had $12440 on line 5. Then what do you have on line 6 and line 8.
3. Where did you report $1742?

I came from Nigeria in August 2003.
For my form 1042-S, line 1: 15
2: $12,440
5: 14
6: 00
7: $1742

For the 1040NR-EZ
3: 15281
4: 0
5: 12440
7: 27721
10: 27721
11: 640
13: 3400
14:23681
15: 3160
17: 3160
18: 990
21: 990

I didn't report the $1742 anywhere on the 1040NR-EZ.

Thanks.

Still you have not provide some important info:
1. Why do you have $15281 on line 3?
2. You received $12440 for scholarship and grants. Are you a graduate student? If yes, then it is tax free in your case.
3. You are from Nigeria and there is no tax treaty between Nigeria and the U.S. so you don't get any extra deduction. You did not claim any either.
4. On line 17 you should have $1742 plus any other federal tax withheld.
5. What do you have on line 25 of 1040NR-EZ

Meanwhile do not miss the date on the letter from IRS. Reply them that you have made some errors on your tax return and you will file amended tax return. Or call them and ask them what you should do as you did not report $1742 on line 17. Also, if you are a graduate student tell them and that your 1042-S is not taxable.

You should use a tax professional to do your amended tax return. You can contact [email protected].