Problems entering CA form 593

[philipat]

I'm trying to enter the CA real estate withholding in TT from my CA Form 593.  I've entered the information into the CA state program in the "Credits and Taxes" portion.  It's listed as "Real Estate Withholding" and I filled out the Form 593.  It calculates the taxes owed and the associated refund based on the amount withheld by the escrow company.  But, when I go back into the Federal program and enter the tax amount into the "Estimates and Other Taxes Paid" -> "Other Income Taxes" -> "Withholding not already entered on a W-2 or 1099", the CA program credits the tax back to me.  

Somehow, entering the CA tax into the Federal program is causing TT to cancel out the tax owed to CA.  How do I fix this?

TIA

[TerryA · Accepted solution]

The 593 reports Calif tax withheld from you so when it's entered into the federal return it increases your itemized deductions and comes to TT/Calif as a tax credit on Form 540 line 73 or Form 540NR line 83. It's like Calif tax withheld on a W-2 - same sort of thing.

In other words, your Calif return is coming out correctly.