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Why do I need file forms 592-B, 593 and 1099s?

 
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TomK2023
Expert Alumni

Why do I need file forms 592-B, 593 and 1099s?

These informational forms tell the IRS and the California Franchise Tax Board (FTB) that some of your taxes have already been paid.  If you don't file these forms you may end up paying the same tax twice.

 

You'll receive California Form 592-B (Resident/Nonresident Withholding) if you received a distribution from a partnership, an LLC, an estate, or a trust, or you are a nonresident who performed services in California.

 

You enter this so the amount in Box 2 (Total CA Tax Withheld) shows up as a credit on your California return (reducing your balance due or increasing your refund).

 

You'll receive California Form 593 (Real Estate Withholding) when you sell California real estate (the title company or buyer is usually required to "withhold" a percentage of the sale price and send it to the state).

 

You enter this form to tell the FTB that they have already received some money from the title company or buyer for the real estate sale.

 

And finally... the IRS receives a copy of every 1099 issued to you, so if you don't include them on your return, their automated system will flag a "mismatch" and send you a bill for the unpaid tax plus interest.

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