1099 DIV and 1099 Int State Withholding

[RNuse09]

Is state withholding on forms 1099 div and 1099 int is just for back up withholding, or is it allowed on a voluntary basis Can anyone point me in the right directions on this one? I have never heard of this one before.

Thanks,

[Burke]

Never seen state withholding on these before, but it could vary from state to state. I would think financial institutions would only do this if they had to via backup notice from the IRS, or if they did not have a certified SSN on file, in which case it would be automatic.

[RNuse09]

Thanks

I can't find much on it. I was told this is something new for this year.

[FEDUKE404]

STATE withholding ?

Agree, I have never seen such on a Form 1099-INT or Form 1099-DIV.

For that matter, I've only seen very infrequent federal withholding on such....usually because the account owner never got around to certifying his/her Soc Sec number.

I would think determining/collecting/reporting state withholding taxes would be a nightmare for the institutions involved.

Maybe some cash-strapped states, such as the Peoples Republic of California, are trying to find more creative ways to find some funds??

FE

[Burke]

I can't find much on it. I was told this is something new for this year.

What state is it?

[RNuse09]

Backup WH

I do state withholding for all fiftey states. The answer is if the taxpayer is subject to backup witholding for fed then certain states require backup witholding as well. The tax payer cannot voluntarily request withholding on these forms.

[taxmom34]

so, if taxpayer has given his social security number to institutions for INT and brokers for DIV there would be no withholding for fed or state. is that correct?