Quote:
Originally Posted by Dixiechick
I have a capital one savings account. I just looked at my statement and Cap. 1 withheld over $8 for federal tax withholding. What is this? Is this a new thing to have savings debit for federal tax withholding on interest???? I've never seen this before. Am I missing something here?
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I believe this is called "Backup Withholding" and it usually is not done unless special circumstances apply. From the IRS website:
Tax Topics - Topic 307 Backup Withholding
Maybe you did not give them your correct SSN when you opened the account?