Yes, it means that some Federal and state taxes have been taken out
of the amount you received.
Just like an employer would withhold taxes from your wages, you
can have taxes withheld from payments reported on a 1099. When you enter the information from the 1099
into your tax return, be sure to include the withholding amounts on the 1099
input screen so that you will get credit for those amounts when your taxes are
calculated.
