Income not Subject to Federal Withholding

[CB Lover]

What is included in "income not subject to Federal withholding"  besides interest and dividend income?

[ErnieS0 · Accepted solution]

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.

Related Resource:

• Tax Withholding for Individuals

[CB Lover]

Thanks so much for your time and information.