Deductions & credits

Your California real estate withholding has to be entered on both the state and the federal return.

To enter this on the 1040, go to:

1. Federal Taxes
2. Other>Other Tax Withholdings
3. Now enter the amount as other tax withholding
4. This will show up in the Tax Payment form as other income tax withholding.

To enter in the California State Return:

1. Select the State Taxes Tab
2. Go to Additional Payments>Other Tax Withholdings
3. Enter the Amount in the Box that mentions Real Estate or Resident or non-Resident Withholdings.
4. The amount will now be recorded in the Tax payment sheet in your California State Return and classified as a Form 593 entry.