Form 945 — Annual Return of Withheld Federal Income Tax
Form 945 is used to report federal income tax withheld from non-payroll payments — including pension and annuity distributions, gambling winnings, Indian gaming profits, backup withholding, and voluntary withholding on certain government payments. It is separate from Form 941 (which covers employee wages). For tax professionals, Form 945 is most commonly encountered when a client has backup withholding on 1099 payments or pension distributions with federal withholding.
Key Rules and Authority
| Rule | Detail |
|---|---|
| Backup Withholding Rate | 24% |
| Pension Default Withholding | 10% (can elect out) |
| Gambling Withholding | 24% on winnings over $5,000 |
| Filing Deadline | January 31 |
| Deposit Rules | Same as Form 941 deposit schedule |
| Form 945-A | Required for semi-weekly depositors |
What Payments Are Reported on Form 945
Form 945 reports federal income tax withheld from: (1) pension, annuity, and IRA distributions (reported on Form 1099-R); (2) gambling winnings (reported on Form W-2G); (3) Indian gaming profits (reported on Form 1099-MISC); (4) backup withholding on 1099 payments (reported on various 1099 forms); (5) voluntary withholding on unemployment compensation (Form 1099-G); and (6) voluntary withholding on Social Security benefits (Form SSA-1099). The withholding is remitted to the IRS using the same EFTPS deposit system as Form 941.
Frequently Asked Questions
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