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jutita
New Member

Does Turbo Tax compute prepaid state tax? Escrow withheld 3.3% as Withholding for California Franchise Tax Board How do I enter this on Return?

 
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4 Replies
IreneS
Expert Alumni

Does Turbo Tax compute prepaid state tax? Escrow withheld 3.3% as Withholding for California Franchise Tax Board How do I enter this on Return?

Yes - To report the estimated tax payments you made to California, please follow these steps:

  1. Click on FederalDeductions & Credits. 
  2. In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Estimated Tax Payments
  3. On the next screen, click the Start/Revisit box next to State estimated taxes for 2018.  
  4. On the screen, Did you pay state estimated taxes for 2018, click the blue Yes box.
  5. Enter your payment(s) on the next screen, How much did you pay in state estimated taxes? Select the state from the drop-down list and enter the amount paid in the box.



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vochakov
New Member

Does Turbo Tax compute prepaid state tax? Escrow withheld 3.3% as Withholding for California Franchise Tax Board How do I enter this on Return?

After entering estimated CA tax payments TurboTax 2020 didn't reflect them in CA Tax Due

Does Turbo Tax compute prepaid state tax? Escrow withheld 3.3% as Withholding for California Franchise Tax Board How do I enter this on Return?

If state income tax wa withheld at a real estate sale closing, it is not entered as an estimated payment.

 

In TurboTax (TT), enter at:

Federal Taxes Tab

Deductions & Credits

-Scroll down to:

--Estimates & other taxes paid

   -Other Income taxes

On the next screen, scroll down to

     -Other income taxes paid in 2019 

       -  Withholding not already entered on a W-2 or 1099

         -On the next screen, enter the amount of withholding and the state

 

 

Does Turbo Tax compute prepaid state tax? Escrow withheld 3.3% as Withholding for California Franchise Tax Board How do I enter this on Return?

There is a mandatory 3.3% California State withholding tax on rental real estate  sales on form 593.

 

Here are my notes on how to enter it.  They might be old so hopefully it is still the same.

To Enter it go to the state tab and step though all the screens (many screens) until the very end and it will ask for Any Real Estate or other withholding forms.  But then it says to also enter it under the Federal side.  So go to.....

Federal Taxes (or Personal for Desktop HB)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Other Income Taxes - Click the Start or Update button

 

Next page scroll down to bottom section Other Income Taxes Paid

Click Start or Update by Withholding not already entered on a W-2 or 1099

 

Then you need to go though the CA return to the very last screen and put it in again so it shows up on the CA 540 line 73 for Real Estate Withholding and not line 71 as income tax withholding.

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