ErnieS0
Expert Alumni

State tax filing

Taxable income not subject to withholding includes interest income, dividends, capital gains, self employment income, IRA (including certain Roth IRA) distributions.

 

Income not subject to withholding does NOT mean tax free income. It means the payer is not required to withhold tax, meaning you could have a big tax bill if you receive a significant amount of income from these sources because no tax was taken out during the year.

 

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