Backup Withholding Tax: What It Is and How It Affects You
September 30, 2025
By Eric Pemper, Founder of CuraDebtHelping people resolve unsecured, tax, and business debt since 2001 · BBB A+ accredited Last updated: July 19, 2026 Backup Withholding Tax And How It Affects You The short answerBackup withholding is a flat 24% federal tax a payer removes from certain payments, mostly investment income and contractor pay, and…
