Question
clack received the following types of income last year on the appropriate forms 1099 *dividends on various common stocks *distribuctions of $40,000 from an employer
clack received the following types of income last year on the appropriate forms 1099
*dividends on various common stocks
*distribuctions of $40,000 from an employer pension plan
*social security payments
*interest of $5,000 from various certificates of deposits
*miscellaneous income of $10,000 from handyman job
clark is worried about not having enough federal withholding to cover his tax liability and incurring a penalty when he files for the year. which of the following statements is correct?
a dividends are always subject to backup withholding on form 1099-div
b. since withholding is not required on any of these types of income , clark can either request withholding or plan to make estimated payments to make up for the lack of withholding
c. since 205 will automatically be withheld from his social security benefits on form sea-1099 , he will only get a different withholding rate if he specifically requests it.
d.he can only request withholding on the employer pension plan.
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