TaxBandits Knowledge Base

What is Form 945?

IRS Form 945 is used to report the federal income tax withholdings for non-payroll payments, which include:

• Pensions
• Military Retirement
• Gambling winnings
• Indian gaming profits
• Certain government payments on which the recipient elected voluntary income tax withholding;
• Payments for work done by contractors, freelancers, or vendors;
• Dividends and other distributions by an Alaska Native Corporation (ANC) on which the recipient elected voluntary income tax withholding; and
• Payments are subject to backup withholding.