Form 945: Annual Nonpayroll Withholding (IRS)

Form 945 is the annual return for federal income tax that was withheld from nonpayroll payments. Wages are not reported on Form 945. Withholding from wages goes on Form 941, Form 943, or Form 944.

This post is general information from the 2026 Form 945 and its instructions. The 2026 return covers calendar year 2026 and is filed in 2027. It does not say whether a payer must withhold on any particular payment.

Who must file

The instructions say that if you withhold, or are required to withhold, federal income tax from nonpayroll payments, you must file Form 945. This includes backup withholding. You do not have to file for a year in which you have no nonpayroll tax liability. The instructions say to report all nonpayroll withholding for the calendar year on one Form 945, and not to file more than one.

Nonpayroll payments

Pensions, annuities, and IRA distributions.
Military retirement.
Gambling winnings.
Indian gaming profits.
Certain government payments on which the recipient elected voluntary withholding.
Dividends and distributions from an Alaska Native Corporation on which the recipient elected voluntary withholding.
Payments subject to backup withholding.

The instructions say withholding shown on Forms 1099, such as Form 1099-R, and on Form W-2G for gambling winnings, is reported on Form 945. Withholding that belongs on Form 1042 for U.S. source income of foreign persons is not reported on Form 945.

Due date

For 2026, the instructions say Form 945 is due by February 1, 2027. If you made deposits on time, in full payment of the taxes due for the year, you may file by February 10, 2027. If a due date falls on a Saturday, Sunday, or legal holiday, the instructions include a separate rule for that case.

The instructions say a Form 945 that the IRS receives after the due date is treated as timely if the envelope is properly addressed, has enough postage, and is postmarked by the due date, or is sent by an IRS-designated private delivery service by the due date.

Backup withholding threshold

The instructions say the backup withholding rate remains 24%. Public Law 119-21 raises the reportable payment threshold under sections 6041(a) and 6041A(a) from $600 to $2,000 for payments made in calendar year 2026 that are subject to backup withholding. The threshold is adjusted for inflation after 2026. For more on backup withholding, see Backup Withholding and Form W-9: What to Know.

Form 945-A and corrections

The instructions say that if you file Form 945, you may also be required to file Form 945-A, Annual Record of Federal Tax Liability. The line 7 instructions explain when. To correct a Form 945 that was already filed, the instructions say to use Form 945-X, which is filed separately from Form 945. Form 945-X can be filed electronically through Modernized e-File.

Deposits

The instructions say all federal tax deposits must be made by electronic funds transfer (EFT). EFT can be made through EFTPS, IRS Direct Pay, or your IRS business tax account. If you do not want to use these methods, the instructions say you can arrange for a tax professional, financial institution, payroll service, or other trusted third party to make the deposit for you. For a payment of more than $1 million, the instructions say the deposit must be submitted by 8:00 p.m. Eastern time the day before the date the deposit is due.

For wage withholding and employment tax, see Form 941: Employer's Quarterly Federal Tax Return and Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return. For payments to foreign persons, see Form 1042-S: The Statement for Foreign Persons' U.S. Income.

Sources: Sources: IRS, Form 945, Annual Return of Withheld Federal Income Tax (2026) (https://www.irs.gov/pub/irs-pdf/f945.pdf); Instructions for Form 945 (2026) (https://www.irs.gov/pub/irs-pdf/i945.pdf) This is general information, not advice about your specific return.

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