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]

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".

[JotikaT2]

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

[Cheyenne0528]

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

[MaryM428]

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.

1. Select Federal, then Deductions & Credits.
2. On the next screen, select I'll choose what I work on.
   1. Skip this step if you go directly to Your tax breaks.
3. Scroll down to Estimates and Other Taxes Paid and select Start or Revisit next to Income taxes paid.
4. On the next screen, select Start next to Withholding not already entered on a W-2 or 1099.
5. Enter your real estate withholding information under State Withholdings and select Done when finished.
6. 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

[Cheyenne0528]

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. 

[fhobbs]

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. 

[Sinaf]

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

[bwhite6]

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.

[gcgriffin]

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.