U.S. · Tax forms · Foreign persons
Form 1042-S income code 50, escrow, not other income.
Code 50 is not what the search suggests. “Other income” is code 23.
Income code 50 on Form 1042-S means “income previously reported under escrow procedure.” It is not the “other income” code: other income is code 23, which the instructions say to use only for U.S. source FDAP income that is not reportable under any other available income code. Code 50 is for gross income whose tax is being deposited this year because it was escrowed earlier.
Look up a 1042-S Income Code 50 item
Result
1042-S Income Code 50 at a glance (2026 edition)
| Code | Meaning | What the IRS says |
|---|---|---|
| 50 | Income previously reported under escrow procedure | Gross income whose tax is being deposited this year because it was previously escrowed. Dormant account and undetermined-income escrow cases |
| 23 | Other income | Only for U.S. source FDAP income not reportable under any other available income code |
| 59 | Consent fees | Optional for 2026. Only if the payment does not fit another income code, excluding code 23 |
| 60 | Loan syndication fees | Optional for 2026. Same condition as code 59 |
| 61 | Settlement payments | Optional for 2026. Same condition as code 59 |
| 55 | Taxable death benefits on life insurance contracts | See section 101 for when death benefits are taxable |
| 57 | Amount realized under IRC section 1446(f) | Regardless of whether paid on a sale or PTP distribution |
| 58 | Publicly traded partnership distributions, undetermined | When the income attributable to a PTP distribution cannot be determined |
What code 50 is for
The instructions say to use code 50 for a recalcitrant account holder of a dormant account whose income a participating FFI reported on Form 1042-S in an earlier calendar year, when the FFI was not required to deposit the tax or determined that withholding was not required until the current year under an escrow procedure (see Regulations section 1.1471-4(b)(6)). Code 50 is also used for income reported on a Form 1042-S in a prior calendar year for which tax withheld was not deposited under the escrow procedure for undetermined income. Footnote 6 to Appendix A adds that code 50 is used only to report gross income the tax for which is being deposited in the current year because it was previously escrowed under chapters 3 and 4 and the agent previously checked the box reporting the tax as not deposited under the escrow procedure.
What other income (code 23) is for
Code 23 is the miscellaneous bucket, and the instructions limit it to U.S. source FDAP income that is not reportable under another available income code. Use the most specific code that fits; see Pub. 515 for an explanation of the income codes. If you paid more than one type of income to the same recipient, file a separate Form 1042-S for each income type.
Codes 59, 60 and 61 for 2026
For tax year 2026 the instructions say use of income codes 59, 60 and 61 is optional. They are for consent fees, loan syndication fees and settlement payments that do not fit another code, and exclude code 23.
Worked example
No numeric example is in the instructions for code 50, so none is invented here. As a decision rule: if a payment is U.S. source FDAP income and no listed code describes it, it is code 23. If the gross income was already reported on an earlier year’s Form 1042-S under the escrow procedure and the tax is being deposited now, it is code 50.
More pages in this set
Related decoder pages: 1042-S Chapter 4 Status Codes, 1042-S Box 12b, 1042-S Exemption Code 04.
Sources
- Instructions for Form 1042-S (2026): the line-by-line and code instructions summarized on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
Edition: Instructions for Form 1042-S (2026). Line numbers, codes, dollar limits and rates are those printed in that edition and change by year. Names in worked examples are made up.
Frequently asked questions
What is income code 50 on Form 1042-S?
Income previously reported under escrow procedure: gross income whose tax is being deposited in the current year because it was previously escrowed.
Is code 50 the other income code?
No. Other income is code 23, which should be used only for U.S. source FDAP income not reportable under any other available income code.
Do I use code 50 for new income?
The instructions describe it for income reported in a prior calendar year under the escrow procedure, with the tax now being deposited, not for first-time reporting of ordinary income.
Are codes 59, 60 and 61 required for 2026?
No. For tax year 2026 the instructions say their use is optional.
What if I paid different types of income to the same person?
File a separate Form 1042-S for each income type.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA, an enrolled agent or a payroll professional can confirm what a line or code means for your filing. Everything runs in your browser; nothing you enter is sent anywhere.