Preparing Your Tax Return(s) and Information Returns

Employment Taxes

Form 945 Annual Return of Withheld Federal Income Tax

Nonpayroll income tax withholding must be reported on Form 945, Annual Return of Withheld Federal Income Tax. For 2000, file Form 945 by January 31, 2002. Separate deposits are required for payroll (Form 941) and nonpayroll (Form 945) withholding. Nonpayroll items include:

• Pensions, annuities, and IRAs.
• Military retirement.
• Gambling winnings.
• Indian gaming profits.
• Voluntary withholding on certain government payments.
• Backup withholding.

All income tax withholding reported on Forms 1099 or W 2G must be reported on Form 945. All income tax withholding reported on Form W-2 must be reported on Form 941, 943, or Schedule H (Form 1040).

For details on depositing and reporting nonpayroll income tax withholding, see the separate Instructions for Form 945.

Changes to Note
Where to File

Important References

Publication 15 Circular E, Employer’s Tax Guide
Form 945 Annual Return of Withheld Federal Income Tax
Instructions for Form 945