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Data entry for California withholding

Form 593, Real estate withholding

You can enter withholding on Form 593 on both the federal Deduct screen and in the Beneficiary module. Enter the portion of withholding to distribute in the Beneficiary module and the portion to remain with the trust in the federal Deduct screen.
The California FTB only needs information from Form 593, such as the withholding agent, seller or transferor, and escrow or exchange information, if you are filing the return electronically. UltraTax CS only includes this information in the electronic file. It doesn’t print with the return.
  • If you aren't filing the return electronically, you should only enter the withholding amounts as described.
  • If you're filing the return electronically, complete the CA 593 screen in the CA Payments folder, unless you're distributing all the withholding.
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 necessary fields.
Withholding distributed to beneficiaries:
To enter the portion of Form 593 real estate withholding to distribute to beneficiaries, select
View
,
Beneficiary Information
, then the
California
 tab. Enter the withholding in the
Pass-through withholding
 field. For a simple trust or a final return, UltraTax CS 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, don’t use the CA 593 or federal Deduct screens.
  • Don’t use the CA 593 screen because the California FTB doesn’t want the 593 information when the withholding distribution is 100 percent (that is, when the withholding is not on Form 541).
  • Don’t use the federal Deduct screen because it is only for withholding that doesn't distribute to the beneficiaries.
If you don't allocate 100% of the withholding to the beneficiaries, and you're filing the return electronically, complete the necessary fields on the CA 593 screen in the Payments folder. The withholding you enter on the 592B and 593 screens need to add up to Form 541, line 31, for the return to pass electronic filing error checking.

Form 592-B, Other withholding

A trust or estate could receive a Form 592-B from another pass-through entity and/or generate from the trust and given to the beneficiaries.
Form 592-B received
Enter Form 592-B withholding that was a payment for the estate or trust in the
State income tax withheld
 field on the federal K1-3 screen. To move this amount from Form 541, line 29 to line 31, enter the withholding from Form 592-B in the
Withholding to reclassify
 field on the CA Pay screen.
If you are allocating 100% of Form 592-B withholding to the beneficiaries (see the previous Withholding distributed to beneficiaries section), don’t use the CA 592B screen. The California FTB doesn’t want 592-B information when you distribute the Form 592-B withholding.
Generating Form 592-B
UltraTax CS completes Form 592-B based on the taxable income on Schedule K-1, column (e) for nonresident beneficiaries, or for instate source income on the Grantor Report.
To find data entry, select
View
,
Beneficiary Information
, then the
California
 tab. Amounts entered in the Nonresident withholding (Force) field transfer to 592-B line 2. Amounts you enter in the
Pass-through withholding
 field transfer to 592-B line 3.

E-file Form 592-B and Form 593

For returns that you are filing electronically:
  • Form 541, line 29 needs to equal the withholding you enter on the federal W2, W2G, and 1099R screens. If there is withholding from any other sources that is on line 29 (including interest and dividends), you'll need to file the return on paper.
  • Form 541, line 31 needs to equal the withholding you enter on the CA 592B and CA593 screens. Use the
    Withholding to reclassify
     field on the CA Pay screen to make adjustments to line 29 and line 31. UltraTax CS subtracts the amount you enter in this field from line 29 and adds it to line 31.

Other withholding

Enter withholding that is a payment for the estate or trust, but not from Form 592-B or Form 593 on the federal 1099, Income, PayExt, W2, or W2G screens. Form 541, line 29, needs to equal the total of CA withholding you enter on the 1099, W2, and W2G screens for the return to pass electronic filing error checking. If you enter withholding on the Income or PayExt screen, and you do
not
 allocate it to beneficiaries, you have to paper file the return. If you enter withholding on the 1099, W2, or W2G screens and
you do
 allocate it to beneficiaries, you have to paper file the return.

Nonresident Withholding Waiver Request

There is a nonresident withholding waiver request available in the California Non Calculating folder.
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