During a CA real estate transaction, I filled out a Form 593 authorizing state withholding. I included that withholding in the Federal Interview under Other Income Taxes/WItholding not already entered on a W-2 or 1099. (The 1099-S reporting the gross proceeds from the sale did not include withholding, so Form 593 provides the only evidence tax was withheld assuming that the Title company actually sent it in.) I filled out CA Form 593 reporting that withholding and the proper amount is reported on Form 540. My CA return passed TurboTax's error-check, but was rejected by the state. The error messages told me to delete Form 593 because it duplicates withholding reported on a W-2 or K-1. When I delete Form 593, nothing changes, but TurboTax's error check says I need to include Form 593.
