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The California individual return has two lines to report withholding, one for general income tax withholding and another for real estate and other withholding reported on Forms 592-B and 593. All data entry for CA withholding purposes is entered at the federal level. For electronic filing purposes, withholding attributable to miscellaneous forms such as 593, 592-B, 1099-B, 1099-DIV, 1099-MISC, etc. must be reconciled for the electronic record and thus, supplemental data entry must be made within the CA input screens. Click on the links below for proper data entry for withholding attributable to each of the following forms.

Withholding from Forms W2, W2G, or 1099-R

All data entry for California withholding attributable to Form W-2, W-2G, or 1099-R and reportable on Form 540 or Form 540NR is done on the corresponding federal input screens. For electronic filing purposes, no further data entry is required as all withholding detail required by the California FTB is included in the electronic record.

Withholding from Schedule K-1

California withholding entered on federal Screen K1-4 or K1T-2 defaults to being reported on Form 540, line 71 or Form 540NR, line 81. The total California withholding attributable to the K1 activity must be entered on federal Screen K1-4/K1T-2 and must also be reported on Screen CAK1-4/CAK1T-2. If none of the withholding is attributable to Form 592-B or 593, no further data entry is necessary as long as the EIN for the K1 activity has been entered. Review Withholding from Forms 592-B and 593 for additional information on data entry for withholding reported on Form 592-B or 593.

Withholding attributable to Form 568 LLC

For a Limited Liability Form 568, there is just one line for withholding that represents only withholding attributable to Forms 592-B and 593. (Withholding from W2, 1099R, etc. does not apply to an LLC return.) UltraTax CS does not transfer withholdings from the federal data entry to Form 568 (LLC). Instead, enter the applicable information, including the LLC unit number on Screen CA592B or CA593, located under the Payments folder.

When the same California withholding is reported via two different forms, such as Form 1099-MISC and Form 592-B, the preparer must decide which form to use for reconciling the electronic record. The simpler approach is to report withholding via Form 1099-MISC by selecting 1099-MISC from the Alternate Form code field on Screen OthWH with the withholding amount and CA as the postal code. To report the withholding as attributable to Form 592-B, enter complete information on Screen 592B. Per California FTB, the electronic record captures much of the detail when reporting withholding via Form 592-B and very little with Form 1099-MISC. Either way, the withholding must be reconciled via one form only.

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