Track helps you withhold state and federal taxes you owe on your self-employment income.
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 (Social Security, Medicare)
- State Income Tax
Where are do the funds go once withheld?
Your tax withholdings are held in an FDIC insured fiduciary account and can be returned to you anytime prior to being submitted to the IRS. In the case in which we cannot submit payment to the IRS, the money will be returned to your withholdings.
Can I get my withholdings back?
Yes! You can have your withholdings returned to you any time prior to the quarterly payment date by visiting the "Return Withholdings" page.
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 the "Income" page of the app.
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 "Withholding Preferences" page of the app.
What if I withhold too much?
Track will adjust your withholding suggestion rate so you don't need to withhold as much for future income. You can request to have your withholdings returned at any time.
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 always have the withholdings returned to you once the funds settle.
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.