Track withholds state and federal taxes you owe on your self-employment income from each paycheck.
Which taxes Track withhold for?
Track withholds for all the taxes you owe on your self-employment income. This includes
- Federal Income Tax
- Self-Employment Tax
- State Income Tax
Where are do the funds go once withheld?
Your tax withholdings are held in an FDIC insured fiduciary account and is marked for payment to the appropriate tax body and cannot be returned. In the case in which we cannot submit payment to the tax body, the money will be returned to you.
How are withholdings triggered?
By default, you specify which 1099 income you want us to withhold for. When a new tax liability is detected, we send you an email with a suggested withholding amount and a description of the tax liability. You can also manually trigger a withholding from our web app: https://app.track.tax/#dashboard
Can Track automatically withhold?
Yes - you can enable “automatic withholding” which does exactly what it sounds; withholds the appropriate amount from every 1099 income detected. We will send you an email 24 hours before any new automatic withholding occurs, so you can prevent the withholding transfer to be initiated for any reason. You can enable automatic withholding inside the settings page of the app.
What if I withhold too much?
Similar to tax filing for W2 income - you will receive a tax refund! Refunds are currently processed quarterly, but we plan to increase the frequency of refunds in the future.
Can I cancel a withholding transfer?
A withholding transfer can be canceled within the first few hours of initiation. However, after the transfer is initiated with your bank, it cannot be canceled. If you miss the cancellation window you can reach out to our support team and we are happy to assist in returning the funds to you.
Can I choose to NOT withhold for certain income?
Yes - you can always choose to not withhold for any income. However, we don’t recommend this, as it opens the possibility of falling behind on your tax liability.
Can I withhold a custom amount?
Track currently does not support custom withholding amounts. We provide a "Withholding Suggestion" on each of your 1099 income transactions, which you can choose to accept or ignore. Read more about Withholding Suggestions.
Do my tax withholdings earn interest?
Similar to tax withholdings from a W2 paycheck, your tax withholdings do not earn interest.