The Internal Revenue Service (IRS) has released the 2011 version of Form 945, Annual Return of Withheld Federal Income Tax, and related instructions.
Form 945 Is to Report Withheld Federal income Tax on Non-Payroll Payments
Taxpayers may use Form 945 to report withheld federal income tax from non-payroll payments. Non-payroll payments include:
- Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), and annuities;
- Military retirement;
- Gambling winnings;
- Indian gaming profits;
- Voluntary withholding on certain government payments; and
- Backup withholding.
Only One Form 945 Should Be Filed Each Year
Report Taxes Withheld on 1099 Series and W-2G, but Not W-2
All federal income tax withholding reported on Forms 1099 (for example, Form 1099-R or 1099-MISC) or Form W-2G must be reported on Form 945. Do not report federal income tax withholding from wages on Form 945.
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