Form 945 Instructions for 2024
Written by Stephanie Glanville
Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.
IRS Form 945 Instructions for 2024
To fill out Form 945, ensure you have all the necessary information related to nonpayroll payments ready. Then, carefully complete each line of Form 945 and submit it by the required deadline. Follow the provided instructions to ensure accurate 945 filings.
Firstly, you should enter your basic business information, including your business name, address, trade name (if applicable), and EIN (Employer Identification Number).
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Line A
Check the box if your business isn’t required to file Form 945 in the future, and enter the date on which the final nonpayroll payments were made.
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Line 1
Enter the total amount of federal income tax that you have withheld from pensions, annuities, IRA distributions, military retirement, and gambling winnings during the calendar year.
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Line 2
Enter backup withholding that you withheld, including backup withholding on gambling winnings.
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Line 3
Enter the total taxes by adding lines 1 and 2. If the amount is $2500 or more, the amount entered must match the amount entered on line 7M (Monthly Summary of Federal Tax Liability).
If you are a semiweekly depositor, check the box below (Semiweekly Schedule depositor) and complete Form 945-A. The amount on Line 3 should match the amount on line M.
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Line 4
Enter the total deposits made for the tax year, including any overpayments applied from the prior year and Form 945-X.
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Line 5
Enter the balance due amount, if line 3 is more than line 4 you must enter the difference here.
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Line 6
Enter the overpayment amount if line 4 is more than line 3. If you have an overpayment on line 5, select the appropriate box to inform the IRS whether you want the overpayment applied to your next return or refunded.
Note: Avoid filling out both lines 5 and 6 together.
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Line 7
Enter your federal tax liability which depends on the amount entered on line 3.
- If line 3 is less than $2,500, you aren’t required to complete line 7 or Form 945-A.
- If line 3 is more than $2,500 and you are a monthly depositor, enter the monthly summary of your federal tax liability on line 7.
- If you are a semiweekly depositor, skip line 7. Instead, you are required to attach Form 945-A along with Form 945.
Third-party designee: If you allow an employee, paid preparer, or another person to discuss about Form 945, check the box “Yes” in this section and enter the designee’s name, phone number, and Preparer Tax Identification Number (PTIN).
Sign and Date: Ensure your Form 945 is signed and dated in the designated area by an authorized individual, such as the owner, officer, or authorized agent of the entity. Include the signer's title, phone number, and address in the appropriate fields.
If you have authorized a paid preparer to file Form 945, they must also sign and date it, providing their Preparer Tax Identification Number (PTIN) and their firm's name, address, and phone number.
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