Fillable Form 945 (2020)

What Is 2020 Form 945?

Form 945 is a tax document utilized by the Internal Revenue Service (IRS) to report on federal income tax withheld from non-payroll payments. This includes a variety of payment types, such as pension distributions, gambling winnings, and backup withholding. The form is crucial for payors withholding taxes from income sources that are not typical salaries or wages.

When to Use IRS 945 Form 2020

Several instances necessitate the use of IRS 945 Form 2020. These situations include the following:

• Withholding federal income tax from non-payroll payments.
• Backup withholding on certain payments, such as interest and dividends, when the recipient fails to provide a correct taxpayer identification number.
• Withholding on pension, annuity, and IRA distributions.
• Reporting withheld taxes on gambling winnings.
• Withholding taxes from military retirement payments.

How To Fill Out IRS Form 945 For 2020

Filling out the IRS Form 945 for 2020 requires careful attention to detail. Here is a step-by-step guide:

• Identify the Employer Identification Number (EIN), the business's name, and the address at the top of Form 945.
• Check the box for the applicable calendar year at the top of the form.
• Enter the total federal income tax withheld from non-payroll payments for 2020 on line 3.
• If necessary, include any adjustment amount for overpayments or underpayments from past years on lines 4 or 5.
• Calculate the total taxes after adjustments by combining line 3 and line 4 and then subtracting the amount on line 5.
• If applicable, insert the total deposits made for the year on line 7.
• Balance any overpayment or underpayment, and decide if you want the overpayment applied to the next return or refunded.
• Sign and date the form. If you had someone prepare the form, there is also a section for the preparer's information.
• Remember to keep a copy of the form for your records.

When to File 945 Tax Form 2020

The 945 Tax Form 2020 must be filed by January 31, 2021. If you made deposits on time in full payment of the taxes due for the year, you may file the return by February 10, 2021. Failure to meet the filing deadline may result in penalties for late filing.