See also: 1040 California frequently asked questions
Overview
California withholding is reported on Form 540/540NR either as real estate and other withholding (Form 540, line 73 or Form 540NR, line 83), representing withholding reported via Forms 593 or 592-B, or as California income tax withheld (Form 540, line 71 or Form 540NR, line 81), representing all other sources of withholding.
California withholding entered at the federal level defaults to being reported on Form 540, line 71 or Form 540NR, line 81. California withholding may be entered on federal Screens W2, W2G, 1099R, A, St Pmt, B&D, C, Rent, Farm, 4835, K1-4, K1T-2, Income, 1099M, and SSA-1099. Use the Total California tax withheld or Total Backup Withholding fields on this screen to move an amount from Form 540, line 71 to line 73 or from Form 540NR, line 81 to line 83.
- If the withholding is not entered in the federal screens, mark the Amount not entered as withholding on any federal screen field.
- If the withholding was entered on federal Screen K1-4 or federal Screen K1T-2, you must use the fields on this screen to identify the corresponding K-1 activity.
For returns filed electronically, amounts reported as real estate and other withholding on Form 540/540NR require supplemental data entry in Screens CA593 and CA592-B. Information in this screen is included in an electronically filed return as required by the Franchise Tax Board.
Similar to Form 540/540NR electronic filing requirements, California FTB requires supplemental data entry for electronically filed Form 568 (LLC) returns which include withholding amounts from Form 592-B or Form 593. If an entry is made in the LLC unit number field, information in this screen is used for reconciling the Form 568 electronic record of the activity selected instead of the Form 540/540NR electronic record. UltraTax CS does not transfer withholding entered in federal screens to Form 568. When a unit of this screen is attributable to an LLC, the amount entered in the Total California tax withheld and Total Backup Withholding fields is reported on Form 568 for the corresponding activity.
Tip: Saving a name of a withholding agent in the view attached to the Name field saves all information entered related to the withholding agent. Entering the same name in the Name field in any Screen CA592B or CA593 for any client in the same data directory automatically populates all other fields in the section with the most recently entered information.
592-B Facsimile
Enter required Form 592-B info for ELF, including
Part I - Withholding Agent:
- Name
- Address
- City, state, and ZIP code -or- Enter Foreign country code/name
- ID Number. Enter SSN/ITIN, FEIN, CA corp number, or SOS number
Part III - Type of Income Subject to Withholding:
- Enter Type of Income. Select at least one checkbox or enter a description for Other.
If the withholding is reflected on Screens CAK1-4 or CAK1T-2, you must identify the appropriate K-1 activity to which the withholding is attributable in order to file the return electronically. Choose the type of Schedule (K1 or K1T) and Unit number from the available fieldviews.
Form 540/540NR Returns:
When California withholding is entered on federal Screens, any amount that transfers to the California return defaults to Form 540, line 71 or Form 540NR, line 81. When an entry is made on this screen in the fields for Total California tax withheld or Total Backup Withholding, the equivalent amount is removed from Form 540, line 71 or Form 540NR, line 81 and added to Form 540, line 73 or Form 540NR, line 83.
Enter X if the amount was not entered as withholding on the federal screens. When this field is marked, the assumption for Form 540/540NR returns is that the amounts in the fields for Total California tax withheld and Total Backup Withholding were not included in Form 540, line 71 or Form 540NR, line 81 and, thus, there is no need to subtract amounts from that line of the return. The amounts for Total California tax withheld and Total Backup Withholding will still be added to Form 540, line 73 or Form 540NR, line 83.
Example:
Taxpayer received Form 592-B which reflects withholding. However, instead of entering data to report the withholding on federal Schedule A, federal data entry reflects an expense for federal Schedule E. In this scenario, mark this field.
Form 568 Returns:
This field is not applicable for Form 568 returns. UltraTax CS assumes that any California withholding entered on federal screens is not applicable to Form 568. To report Form 592-B withholding amounts on Form 568, enter amounts on this screen in the Total California tax withheld and Total Backup Withholding fields and make an appropriate entry in the field for LLC unit number.
To include information from this screen on Form 568 and the related electronic record, select the appropriate LLC activity from the fieldview. When an entry is made here, information on this screen is omitted from Form 540/540NR and the related electronic record.
Form 540/540NR returns:
When LLC unit number field is blank, amount entered here is reported on Form 540, line 73 or Form 540NR, line 83.
When Withholding not entered on any federal screen and LLC unit number fields are both blank, Form 540, line 71 or Form 540NR, line 81 is reduced by amount in this field.
Form 568 returns:
When an entry is made in the LLC unit number field, the amount entered here is included on Form 568.
Form 540/540NR returns:
When LLC unit number field is blank, the amount entered here is reported on Form 540, line 73 or Form 540NR, line 83.
When Withholding not entered on any federal screen and LLC unit number fields are both blank, Form 540, line 71 or Form 540NR, line 81 is reduced by the amount in this field.
Form 568 returns:
When an entry is made in LLC unit number field, the amount entered here is included on Form 568.
2018 UltraTax CS
