The 1042-S Exemption Code (EXMP) table provides the classification of the types of income exempted from the tax base. The records entered on this table can be selected on the 1042-S Income Code/Tax Rate (ICTX) table. Valid 1042-S Exemption Codes are provided for this table. Exemption Codes provided are those that are valid in the current year and previous years. There are no validations to ensure that the Exemption Code selected is valid for the calendar year of the form, please look at IRS guidelines to ensure the correct Exemption Code is selected. Changes or new codes to this table will be provided to you in the annual tax updates.
The Chapter 3 flag should be checked if the exemption record is associated with Chapter 3. The Chapter 4 flag should be checked if the exemption record is associated with Chapter 4. The Chapter 3 flag and Chapter 4 flag cannot be selected at the same time unless the exemption code is 00.