Partnership receives withholding through Form 593 or 592-B
If a California partnership has withholding that flows to the partnership from Form 593 or Form 592-B, the following options are available:
- The partnership can use the withholding as a payment for partnership tax.
- For this option, enter the amount from Form 593/592-B on CALPmt/CAPPmt in theReal estate or other withholdingfield. If the return is being electronically filed, complete the Form 592-B/593 information on theCA592Bscreen located in theElectronic Filingfolder.
- The partnership can pass the amounts to the partners.
- To pass these amounts to partners, enter the amount in theReal estate or other withholdingfield on theCAK-3screen, located in theSchedule Kfolder. An FYI diagnostic will also display advising you to review instructions for Form 592.
Withholding can't be refunded on Form 565 or Form 586. The largest amount of withholding that can be used on Form 565/568 is the amount of tax. Any remaining tax withholding must be passed through to the partners.
