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rddavis2
New Member

Money Market Saving

Are federal taxes supposed to be deducted from my money market savings in the state of Tennessee? If not, who shall I contact if they are to stop the taxing, or should I report this on my taxes?

2 Replies
VolvoGirl
Level 15

Money Market Saving

Ask the bank or fund company.

JandKit
Employee Tax Expert

Money Market Saving

Hi rddavis,

If these are federal taxes withheld, it sounds like backup taxes:

When it applies, backup withholding requires a payer to withhold tax from payments not otherwise subject to withholding. You may be subject to backup withholding if you fail to provide a correct taxpayer identification number (TIN) when required or if you fail to report interest, dividend, or patronage dividend income. These are actually Federal taxes and should be shown on your tax return for federal taxes paid.

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