This Form 945 2026 guide explains the IRS Annual Return of Withheld Federal Income Tax. Form 945 reports nonpayroll federal income tax withholding under its instructions. This is separate from payroll income tax withholding reported on an employer return. Backup withholding and withholding from certain other payment categories can require careful coordination with information returns and deposit records.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Form 945 2026 does and who prepares it
A payer reports federal income tax withheld from the nonpayroll payments covered by this annual return.
For the connected reporting route, see Form 1099-R. Keep the role of that document separate from the task explained on this page.
| Official form | Form 945 |
|---|---|
| IRS title | Annual Return of Withheld Federal Income Tax |
| Guide period | 2026 |
| Target version | 2026 |
| Availability | Draft — not for filing |
| Last checked | October 31, 2026 |
Get the Form 945 2026 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Form 945 2026 should you use?
The 2026 in the title identifies the tax year or calendar-year information addressed by this guide. For a 2026 income reporting document, the preparation or filing activity may occur in 2027. Do not change the income year simply because the calendar has changed. The exact filing or furnishing date comes from the instructions for this form and the filer circumstances. The linked target PDF is a draft. It may be used to understand the proposed layout, but it is not a form to file. Amounts or instructions still subject to completion must be checked again when the final version is released.
Records to gather for Form 945 2026
- Nonpayroll payment ledger.
- Withholding records by payment type.
- Deposit confirmations.
- Related information returns.
- Payer EIN.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Form 945 2026
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
Report all federal income tax withholding from nonpayroll payments or distributions annually on one Form 945. Don’t file more than one Form 945 for any calendar year.
If you file Form 945, you may also be required to file Form 945-A, Annual Record of Federal Tax Liability. See the line 7 instructions for details.
If you withhold or are required to withhold federal income tax (including backup withholding) from nonpayroll payments, you must file Form 945. See Purpose of Form 945, earlier. You don’t have to file Form 945 for those years in which you don’t have a nonpayroll tax liability. Don’t report on Form 945 withholding that is required to be reported on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
Additional reporting conditions
States must allow unemployment compensation recipients to elect to have federal income tax withheld at a 10% rate. Recipients paid under the Railroad Unemployment Insurance Act may also elect withholding at a 10% rate. Recipients of any of the following payments may request federal income tax withholding at a rate of 7%, 10%, 12%, or 22%. • Social security and Tier 1 railroad retirement benefits. • Certain crop disaster payments. • Commodity Credit Corporation loans. • Dividends and other distributions by an ANC.
The payee may request voluntary withholding on Form W-4V or you may develop your own substitute form. Any voluntary withholding on these payments must be reported on Form 945 (and on the required information return—Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form SSA-1099; or Form RRB-1099) and is subject to the deposit rules.
Calculations and supporting information
Deposit all nonpayroll (Form 945) withheld federal income tax, including backup withholding, by EFT. An EFT can be made using EFTPS, IRS Direct Pay, or your IRS business tax account. For more information, see Federal tax deposits must be made by electronic funds transfer (EFT) under Reminders, earlier. Combine all Form 945 taxes for deposit purposes. Don’t combine deposits for Forms 941, 943, 944, or CT-1 with deposits for Form 945.
Also don’t combine Form 945 taxes with taxes for Forms 941, 943, 944, or CT-1 for purposes of determining any of the deposit rules discussed next, such as whether the $2,500 threshold is applicable, whether you’re a monthly or semiweekly schedule depositor, or whether the $100,000 next-day deposit rule applies. Generally, the deposit rules that apply to Form 941 also apply to Form 945. However, because Form 945 is an annual return, the rules for determining your deposit schedule (discussed below) are different from those for Form 941.
See section 11 of Pub. 15 for a detailed discussion of the deposit rules. Tip: If the total amount of tax for 2026 is less than $2,500, you’re not required to make deposits during the year.
Regulated investment companies (RICs) and real estate investment trusts (REITs) must report any backup withholding on Form 945 in the year that the dividends are actually paid. This includes January payments of dividends declared during October, November, and December of the prior year. See the Instructions for Form 1099-DIV for special reporting requirements.
Exceptions and related reporting
Add lines 1 and 2. If total taxes are $2,500 or more, the amount reported on line 3 must equal the total liability for the year reported on line 7m of the Monthly Summary of Federal Tax Liability, or line M of Form 945-A.
Enter your total Form 945 deposits for the year, including any overpayment that you applied from filing Form 945-X in 2026, and any overpayment that you applied from your 2025 return.
You don’t have to pay if line 5 is under $1. Generally, you should have a balance due only if your total taxes for the year (line 3) are less than $2,500. If you made payments under the accuracy of deposits rule, see section 11 of Pub. 15. If you were required to make federal tax deposits, pay the amount shown on line 5 by EFT.
If you weren’t required to make federal tax deposits or you’re a monthly schedule depositor making a payment under the accuracy of deposits rule (see section 11 of Pub. 15), pay the amount shown on line 5 by EFT or another available payment option. The IRS requires paying electronically whenever possible. Options to pay electronically include using your bank account with Direct Pay, your debit or credit card, your digital wallet, or your online account. Go to IRS.gov/Payments to see all your payment options. Also see IRS.gov/ModernPayments.
If you pay electronically, file your return using the Without a payment address under Where To File, earlier, and don’t file Form 945-V, Payment Voucher.
Further form details
Caution: The amount entered on line 7m must equal the amount reported on line 3. Report your liabilities on Form 945-A instead of on line 7 if either of the following applies. • You were a semiweekly schedule depositor during 2026. Don’t complete entries a through m of line 7. Instead, complete and file Form 945-A with Form 945. • You were a monthly schedule depositor for 2026 and during any month you accumulated nonpayroll taxes of $100,000 or more.
Because this converted you to a semiweekly schedule depositor for the remainder of 2026 (and for 2027), you must report your liabilities on Form 945-A for the entire year. Don’t complete entries a through m of line 7. For more information, see $100,000 Next-Day Deposit Rule in section 11 of Pub. 15.
Further form details
The following persons are authorized to sign the return for each type of business entity. • Sole proprietorship—the individual who owns the business. • Corporation (including a limited liability company (LLC) treated as a corporation)—the president, the vice president, or another principal officer duly authorized to sign. • Partnership (including an LLC treated as a partnership) or unincorporated organization—a responsible and duly authorized partner, member, or officer having knowledge of its affairs. • Single-member LLC treated as a disregarded entity for federal income tax purposes—the owner of the LLC or a principal officer duly authorized to sign. • Trust or estate—the fiduciary.
Form 945 may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed. Alternative signature method. Corporate officers or duly authorized agents may sign Form 945 by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at IRS.gov/irb/2005-28_IRB#RP-2005-39.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| A | If you don’t have to file returns in the future, check here | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 1 | Federal income tax withheld from pensions, annuities, IRAs, gambling winnings, etc | Reconcile the relevant payment or withholding record with the tax period and category requested here. A reported payment is not necessarily the final tax liability. |
| 2 | Backup withholding | Reconcile the relevant payment or withholding record with the tax period and category requested here. A reported payment is not necessarily the final tax liability. |
| 3 | Total taxes. Add lines 1 and 2 | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 4 | Total deposits for 2026, including overpayment applied from a prior year and overpayment | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
Further selected fields
| Line or box | Label in the source form | What to check |
|---|---|---|
| 5 | Balance due. If line 3 is more than line 4, enter the difference and see the separate instructions | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 6a | Overpayment. If line 4 is more than line 3, enter the difference | Reconcile the relevant payment or withholding record with the tax period and category requested here. A reported payment is not necessarily the final tax liability. |
| 6c | Routing number | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 6e | Account number | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 7 | Monthly Summary of Federal Tax Liability. (Don’t complete if you were a semiweekly schedule depositor.) | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
A practical example
A payer has employee payroll and also makes payments subject to nonpayroll withholding. It separates the two ledgers and deposit trails before completing the applicable returns. The presence of federal withholding on a statement does not by itself make it payroll withholding.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Form 945 2026
- Do not mix payroll and nonpayroll withholding liabilities.
- Identify the correct annual return before allocating deposits.
- Information return withholding totals should be reconciled with the payer annual return.
Questions about Form 945 2026
Does receiving or downloading this form mean I must file it?
A payer reports federal income tax withheld from the nonpayroll payments covered by this annual return. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Can I file the draft PDF?
No. The linked target is marked as a draft. Use it to understand the proposed layout and prepare records, but wait for the applicable final filing version. Check the IRS source again before using any year-specific amount, worksheet or filing instruction.
What should I do if the underlying information is wrong?
Do not mix payroll and nonpayroll withholding liabilities. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include nonpayroll payment ledger, withholding records by payment type, deposit confirmations. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.