Form 945 is an extraordinarily common federal form. Also known as the Annual Return of Withheld Federal Income Tax, the document is used to report withheld federal income tax from nonpayroll payments. In simple terms, if you’ve received any recurring payment that is not typical payroll, or if you have won money, Form 945 is what you’ll need to use to report the federal tax paid.
Form 945 is simple, but you’ll likely need some help filling it out. If you’re searching for a software solution to support your filing, look no further than Advanced Micro Solutions. Our Forms Filer Plus provides an easy and accessible method of filing Form 945, no matter what type of nonpayroll income you need to report.
Who Needs to File Form 945
Payments reported on the form can vary. The IRS provides a comprehensive list of nonpayroll payments. This includes the following.
- Military retirement
- Gambling winnings
- Indian gaming profits
- Pensions (including distributions from tax-favored retirement plans, like section 401(k), section 403(b), and governmental section 457(b) plans, as well as annuities)
- Backup withholding
- Voluntary withholding on certain government payments
Most businesses completing Form 945 will likely file due to backup withholding or voluntary withholding on certain payments.
Preparing to File Form 945
Form 945 shouldn’t take much time. The only information you’ll need includes the federal income tax withheld from the nonpayroll payments (or backup withholding), the total taxes, and the balance due. While the form is simple, you should have this information on-hand prior to filing. This will make the process faster while helping you avoid mistakes. If you do end up making an error, you can use Form 945-X to correct the mistake.
Using AMS Filing Software
If you’ve received any nonpayroll payments during the fiscal year, you’ll need to complete Form 945. This is easier to do if you have a software tool to help. Our Forms Filer Plus ($49) is a comprehensive and powerful filing software. It supports around 300 forms, including the 945. To complete the document, you’ll simply need to enter data directly onto a facsimile of the form. When you’re done, simply print or file electronically right from the software. If you’re looking for additional support, know that the Forms Filer Plus module also supports 945-A.
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Additional Support from AMS
Though Form 945 is explicitly designed for nonpayroll payments, you may still have various accounting needs, some related to payroll. Advanced Micro Solutions has a wide selection of modules to choose from, allowing business owners to build a fully customized accounting software tool. If your needs extend beyond Form 945, consider trying any of the following products.
- W2/1099 Forms Filer (required platform)—$79
- Payroll Software—$129
- Software-Generated Forms—$79
- E-File Direct—$109
- Affordable Care Act Filer—$79
- Forms Filer Plus—$49
If you have any questions, call our Sales and Information Team at 800-536-1099. Whether you need customer support, want to make a correction, or are interested in retooling your current payroll process, AMS has the tools to help.