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 enter your information.
Second, go back to your federal return.
- Select Federal, then Deductions & Credits
- On the next screen, select Find tax breaks and answer any following questions until you reach the Your tax breaks screen
- Skip this step if you go directly to Let's check for tax breaks
- Scroll down to Estimates and Other Taxes Paid, select Show More, then 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
- 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
- Return to your California state return, filling out any additional information, until you reach the Your [tax year] California taxes are ready for us to check screen. Find the Credits and taxes section and select Edit
- Scroll down until you find the Real Estate and Other Withholding section and select Revisit. 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.