What form is utilized to report federal income tax withheld from non-wage income?

The correct form used to report federal income tax withheld from non-wage income is the Form 945. This form specifically addresses income that is not considered wages, which includes certain types of payments such as pensions, annuities, and some other non-wage payments.

Employers use Form 945 to report the amounts they withheld from these payments throughout the year, ensuring the IRS is informed about the federal income tax that has been collected on behalf of the payees. This form is filed annually, and its focus on non-wage payments differentiates it from other payroll-related forms.

In contrast, the other options serve different purposes: Form 940 is used to report federal unemployment tax obligations, while Form 941 is designed for reporting income and payroll taxes withheld from employees' wages. The W-2 form is utilized to report wages, salaries, and tips paid to employees along with the taxes withheld from those earnings, making it relevant only to wage income. Understanding the purpose of these forms helps clarify the proper reporting channels for various types of income and tax withholding.