Your California real estate withholding has to be entered on both the state and the federal return.
First, complete your state return. When you reach Take a look at California credits and taxes, select Start next to Real Estate and Other Withholding. Complete this section to answer your information.
Second, go back to your federal return.
- Select Federal, then Deductions & Credits.
- On the next screen, select I'll choose what I work on.
- Skip this step if you go directly to Your tax breaks.
- Scroll down to Estimates and Other Taxes Paid and select Start or Revisit next to Income taxes paid.
- On the next screen, select Start next to Withholding not already entered on a W-2 or 1099.
- Enter your real estate withholding information under State Withholdings and select Done when finished.
- Return to your California state return, going all the way to the end. Enter your real estate withholding information again.
The withholding information will show up on your CA state return on Form 540 line 73 for real estate withholding and not on line 71 as income tax withholding.
Form 593
