CA 592-B for trust

[someOldGuy]

I use business turbotax for a family trust. This trust has a rental home in CA. The rental company sends me a 592-B form showing the tax withheld from the rental income. How do I get this tax distributed to the two K-1 CA recipients? Right now CA does not return the taxes withheld from the rental income. Is there a how to on what to do? 

[Critter]

You will need to contact TurboTax support for this situation ….

Go to this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

[someOldGuy]

I am sorry to say they could not help me. Seems like a simple question. Trust gets a 592-B. How to pass this on to K1 recipients. Anyone know how this business program works? People who sell it do not seem to know which I find a tad annoying. Any other tax programs out there that might have this figured out?

[tagteam · Accepted solution]

I am not sure whether or not this will be of any use, but the instructions are on the CA FTB web site.

See https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/august-2019/schedule-k-1-and-withholding.html

With respect to how to enter this into the CA fiduciary module of TurboTax Business, you might want to try Forms Mode. The Interview, Step-by-Step Mode, for state returns will most likely not provide much, if any, guidance as is typical of most consumer-level (and even professional) income tax preparation software for trusts and estates.

[Carl]

I am only vaguely familiar with the CA form 592-B. I can recall this issue occurring a few years ago. I also recall the the "answer" was that you have to go into forms mode to enter that 529-B into the California Estate Tax Return, Form ET-1.  But I don't recall which specific worksheet in the program where you have to enter the tax information from the 592-B if section 3 box c is checked.

[someOldGuy]

Form 592 looks like the winner. THanks!

[sbormann]

What is the difference between form 592 and Form 592-PTE?

[Cynthiad66]

Tax withheld on California source income is reported to the Franchise Tax Board (FTB) using Form 592, Resident and Nonresident Withholding Statement. Form 592 includes a Schedule of Payees section, on Side 2, that requires the withholding agent to identify the payees, the income amounts, and the withholding amounts.

Use Form 592-PTE to report the total withholding under California Revenue and Taxation Code (R&TC) Sections 18662. A PTE is generally an entity that passes its income or losses through to its owners instead of paying the related tax at the entity level.

@sbormann

[tvachon57]

I'm having a related problem. I am unable to enter the correct Withholding agent. It automatically loads information from my wife's Trust, but we her trust was created by her parent's trust (now closed) that had tax withheld by California on a real estate transaction. The withholding agent is the parent's trust, clearly spelled out on the 592-B we received from the CPA of her parent's trust. 

I guess, since CA e-file is not supported, I can just use the form I received from the CPA, but then I have messed up files, showing one thing in Turbotax, and another in what I file. This really feels half baked, and not what I'm used to when using the 1040/540 desktop programs.