what is the correct way to enter federal tax that was withheld by a bank when no 1099 was issued?

Question

Hi everyone,

I’m using FreeTaxUSA and need guidance on an edge case involving backup withholding with no 1099 issued.

My situation:

* The BIZ bank account is for a single-member LLC (disregarded entity)
* The account is opened under my EIN only (my SSN is not on the account)
* I received a $400 bank account bonus
* The bank withheld $96 (24%) federal tax as backup withholding
* Because the total bonus was under $600, the bank did not issue a 1099-INT or 1099-MISC
* I have no other business income for the LLC
* This is not payment for services and should not be reported on Schedule C

What I’ve done:

* I reported the $400 as Other Income on my personal return
* I’m trying to properly claim the $96 federal tax withheld
* I do not see an option for:* Federal tax withheld not on a W-2 or 1099
* Backup withholding
* A clear Payments screen for this situation

Question:

In FreeTaxUSA, what is the correct way to enter federal tax that was withheld by a bank when no 1099 was issued, especially when the account is a single-member LLC under an EIN?

Should this be entered:

* As federal income tax withheld, and if so, where?
* Or as a payment (estimated tax / other payment) since there is no information return?

I want to ensure this flows correctly to Form 1040 total payments and is credited properly.

Thanks in advance — I appreciate any help from FreeTaxUSA staff or experienced users.

MatthewD · Answer

Hello PEVIANI,

No, you don't need an EIN to enter the estimated taxed paid.  The amount will be associated with your SSN.  The IRS may ask for evidence to verify the payment.  If they do, provide them with a copy of the bank statement.

PEVIANI · Answer

Thanks for answering my question and providing a solution. I have 1 follow up question. Do I need to provide my EIN anywhere for this? I have no other activity to report for my single member llc. The reason I ask, is because when i login to the person irs account, I don't see that as an es payment was made, so how will they verify it.

GeorgeM · Answer

Hello Peviani:

You can report the tax withholding in the amount of $96 as an estimated tax payment.  To report the $96 as an estimated tax payment, select the Misc tab, and in the drop-down, select 2025 Estimated Tax Payments.

On the next screen, select Yes when asked “Did you make estimated tax payments for your 2025 federal tax return?,” and select Save and Continue.  Thereafter, select the appropriate time period that corresponds to when the bank withheld the $96, and then select Save and Continue.

Your estimated tax payment of $96 should appear in the Payments and Refundable Credits section of your Form 1040, on line 26.  To view a watermarked copy of your Form 1040, select the Summary tab, then scroll down to the bottom of the screen, and select the View tab across from View Federal Tax Return.