topic The system is saying I cannot file my California tax return electronically due to withholding from a source other than W2, 593, etc AFTER I entered the Form 593. in State tax filing

The system is saying I cannot file my California tax return electronically due to withholding from a source other than W2, 593, etc AFTER I entered the Form 593.

Cheyenne0528 — Thu, 25 Mar 2021 15:43:14 GMT

I entered a Form 593 for Real Estate Witholding to my California Tax Return. Once I did that, they system says I cannot file my California Tax Return electronically because "the return has withholding from a source other than Forms W2, W2G, 1099R, 1099G, 1099INT, 1099DIV, 1099B, 1099MISC, 52B and 593".

Re: The system is saying I cannot file my California tax return electronically due to withholding...

JotikaT2 — Tue, 30 Mar 2021 16:27:37 GMT

Please follow the steps in the link below to enter your withholdings from your Form 593. There are several steps so please be sure to follow them all.

This will ensure your information is pulled in correctly and should remove the error message.

CA withholding on Form 593

Re: The system is saying I cannot file my California tax return electronically due to withholding...

Cheyenne0528 — Tue, 30 Mar 2021 17:03:25 GMT

It is already entered on federal and when I try to file California return, I get that error.

Re: The system is saying I cannot file my California tax return electronically due to withholding...

MaryM428 — Wed, 31 Mar 2021 19:23:50 GMT

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.
1. 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

Re: The system is saying I cannot file my California tax return electronically due to withholding...

Cheyenne0528 — Wed, 31 Mar 2021 20:02:38 GMT

This is the exact same response I already received. And as I said, that is how it is entered on the state and federal forms.

Re: The system is saying I cannot file my California tax return electronically due to withholding...

fhobbs — Sat, 09 Apr 2022 18:45:31 GMT

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.

Re: The system is saying I cannot file my California tax return electronically due to withholding...

Sinaf — Mon, 11 Apr 2022 17:52:06 GMT

Did you resolve this issue last year? I have the exact same issue

Re: The system is saying I cannot file my California tax return electronically due to withholding...

bwhite6 — Tue, 12 Apr 2022 13:48:39 GMT

YES!!

After making sure that everything is correct in Fed...go to form 593 and enter EVERYTHING...all three pages of the original form. Once that is done, rerun CA and it should be fine and ready to e-file.

Re: The system is saying I cannot file my California tax return electronically due to withholding...

gcgriffin — Sat, 16 Apr 2022 02:40:39 GMT

I would agree with this. I entered the withholding in the Federal section as described above. I then added a Form 593 to the CA return, filling it out completely and exactly the same way it was done at the time of the sale. Then all of the information flowed into the Form 540 properly and it was accepted for e-file.

Re: The system is saying I cannot file my California tax return electronically due to withholding...

user17707651199 — Wed, 11 Feb 2026 01:45:23 GMT

The step-by-step procedure referenced appears to actually contain an instruction that creates the error described.

"Select Yes on the Do you have any tax withholding you haven't entered yet? screen. Enter your real estate withholding information under State Withholdings and select Done when finished."
If you enter the information here it will raise the flag described in the post. You don't appear to need to report it here as actually already reported in the California 593 for the purposes of the California return.
What potentially could impact the Federal return is the ACTUAL amount of CA tax paid/due, but that should be fed back from the CA return as a deductible to the Federal return?