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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 Withholding. Complete this section to answer your information.
Second, go back to your federal return.
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.
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