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You can enter withholding on Form 593 on both the federal Deduct screen and on the Beneficiaries tab. You should enter the portion of withholding to distribute on the Beneficiaries tab and the portion to remain with the trust in federal Deduct screen.

The California FTB only requires information from Form 593, such as the withholding agent, seller or transferor, and escrow or exchange information if you are filing the return electronically. Onvio Tax only includes this information in the electronic file - it does not generate with the return.

• If you are not filing the return electronically, you should only enter the withholding amounts as described below.
• If you’re filing the return electronically, complete the CA 593 screen in the CA Payments folder, unless you are distributing all the withholding. See below.

Withholding not distributed to beneficiaries

Use the federal Deduct screen to enter the portion of Form 593 real estate withholding that should stay with the trust. Enter the amount of withholding you are not distributing in the Not entered elsewhere statement. Enter Tax type code 4 and Postal code CA.

If you’re filing the return electronically, go to the CA 593 screen in the Payments folder and complete the applicable fields.

Withholding distributed to beneficiaries

To enter the portion of Form 593 real estate withholding you are distributing to beneficiaries, go to the Beneficiary tab and enter the withholding in the Pass-through withholding field.For a simple trust or a final return, Onvio Tax allocates 100% of the state withholding to beneficiaries by default. To remove the default allocation, enter X in the Final return or simple trust: Allocate credits, estate taxes, or state withholding between trust and beneficiaries field on the federal Allocate screen.

If you are allocating 100% of the withholding to the beneficiaries, do not use the CA 593 or federal Deduct screens.

• Do not use the CA 593 screen because the California FTB does not want the 593 information when the withholding distribution is 100 percent (i.e., when the withholding is not on Form 541).
• Do not use the federal Deduct screen because it is only for withholding that doesn’t distribute to the beneficiaries.

If you do not allocate 100% of the withholding to the beneficiaries and you are filing the return electronically, complete the applicable fields on the CA 593 screen in the Payments folder. The withholding you enter on the 592B and 593 screens must add up to Form 541, line 31 for the return to pass electronic filing error checking.

E-filing Form 593

For returns that you are filing electronically:

• Form 541, line 29 must equal the withholding you enter on the federal W2, W2G and1099R screens. If there is withholding from any other sources on line 29 (including interest and dividends), you must paper file the return.
• Form 541, line 31 must equal the withholding you enter on the CA 593 screen. Use the Withholding to reclassify field on the CA Pay screen to make adjustments to line 29 and line 31. Onvio Tax subtracts the amount you enter in this field from line 29 and adds it to line 31.

California overview (1041)