Question

Money Market Saving

Forum|Forum|4 years ago
September 30, 2021
2 replies
0 views

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?

VolvoGirl

Employee

Ask the bank or fund company.

J

JandKit

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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