Form 1042-S for Canadian Landlords in Tennessee
How to use Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding) when you own rental property in Tennessee as a Canadian non-resident.
⚠️ Important Disclaimer
This content is for informational purposes only and does not constitute legal, tax, accounting, or financial advice. Tax laws change frequently — always verify with the CRA and IRS or consult a qualified cross-border tax accountant before making decisions.
BorderBird is a rental-management and record-keeping tool. It is not an accountant and does not provide accounting, tax, or legal advice.
March 15 of the following calendar year — both filed with the IRS and furnished to the recipient
Non-resident aliens (including Canadians) receiving US-source rental income; and the withholding agents — property managers, platforms, and business tenants — who pay them
No state income tax
What is Form 1042-S?
Form 1042-S is the slip a US withholding agent — a property manager, a tenant paying rent in the course of a trade or business, or a platform like Airbnb or VRBO — issues to a non-resident alien reporting US-source income and the tax withheld from it. For a Canadian with a US rental it is the IRS mirror of the CRA's NR4: it shows gross rent in box 2 and the 30% withheld in box 7a, and it is the document the landlord uses to claim that withholding back as a credit on Form 1040-NR.
How Form 1042-S Applies to Tennessee Rental Property
As a Canadian non-resident landlord with property in Tennessee, you must comply with both CRA (Canadian) and IRS (US federal) tax obligations. Form 1042-S is part of your US federal filing requirements.
Good news: Tennessee has no state income tax, so you only need to worry about your federal IRS obligations and your CRA obligations in Canada.
Who Must File Form 1042-S?
Non-resident aliens (including Canadians) receiving US-source rental income; and the withholding agents — property managers, platforms, and business tenants — who pay them
Filing Deadline
March 15 of the following calendar year — both filed with the IRS and furnished to the recipient
Key Steps for Tennessee Landlords
- Confirm you need to file — Review the eligibility criteria above. Not every Canadian landlord with Tennessee property will need every IRS form.
- Obtain an ITIN if needed— If you don't have a US Social Security Number, apply for an Individual Taxpayer Identification Number via Form W-7 before filing.
- Gather your Tennessee records — Collect rent received, expenses paid (mortgage interest, property management, repairs, insurance), and property tax bills.
- Complete Form 1042-S — Follow the IRS instructions for this form, incorporating your Tennessee-specific figures.
- File by the deadline — March 15 of the following calendar year — both filed with the IRS and furnished to the recipient
- Report on your Canadian return — You must also report this income to CRA on your T1 return and claim a foreign tax credit for any US tax paid.
Related IRS Forms
Form 1042-Sis typically filed alongside other IRS forms. Review the related forms listed in the info box above, and consult a cross-border tax accountant to ensure you're filing everything required for your Tennessee rental property.
Frequently Asked Questions
Do I need to file Form 1042-S as a Canadian landlord in Tennessee?
Non-resident aliens (including Canadians) receiving US-source rental income; and the withholding agents — property managers, platforms, and business tenants — who pay them If you own rental property in Tennessee, Form 1042-S is an IRS requirement — review the eligibility criteria above for your specific situation.
What is the deadline to file Form 1042-S for Tennessee rental income?
March 15 of the following calendar year — both filed with the IRS and furnished to the recipient
Does Tennessee have its own version of Form 1042-S?
Form 1042-S is a federal IRS form and applies the same way in every US state. Tennessee has no state income tax, so you only need to worry about your federal IRS obligations and your CRA obligations in Canada.
Can I deduct Tennessee expenses on Form 1042-S?
Deductible expenses depend on the form. For Schedule E and Form 1040-NR, you can typically deduct mortgage interest, property management fees, repairs, property taxes, and depreciation on your Tennessee rental property. Consult a cross-border tax accountant for your specific situation.
Simplify your Tennessee rental tax prep
BorderBird tracks your Tennessee rental income in USD, converts to CAD at CRA-approved rates, and generates reports your accountant needs to file Form 1042-S and your Canadian T1 return.
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