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A trust or estate could receive a Form 592-B from another pass-through entity and/or generate from the trust and provided to the beneficiaries.

Entering withholding from Form 592-B

You should enter 592-B withholding that was a payment for the estate or trust in the State income tax withheld field on the federal K1-3 screen. To move this amount from Form 541, line 29 to line 31, enter the withholding from Form 592-B in the Withholding to reclassify field on the CA Pay screen.

If you are allocating 100% of Form 592-B withholding to the beneficiaries (see Withholding distributed to beneficiaries above), do not use the CA 592B screen. The California FTB does not want 592-B information when you distribute all of the Form 592-B withholding.

Creating Form 592-B

Onvio Tax completes Form 592-B based on the taxable income on Schedule K-1, column (e) for nonresident beneficiaries, or for instate source income on the Grantor Report.

Data entry can be found in the Beneficiary tab. Amounts you enter in the Nonresident withholding (Force) field flow to 592-B line 2. Amounts you enter in the Pass-through withholding field flow to 592-B line 3.

E-filing Form 592-B

For returns that you are filing electronically:

• Form 541, line 29 must equal the withholding you enter on the federal W2, W2G, and 1099R screens. If there is withholding from any other sources on line 29 (including interest and dividends), you must paper file the return.
• Form 541, line 31 must equal the withholding you enter on the CA 592B screen. Use the Withholding to reclassify field on the CA Pay screen to make adjustments to line 29 and line 31. Onvio Tax subtracts the amount you enter in this field from line 29 and adds it to line 31

Nonresident Withholding Waiver Request

There is a nonresident withholding waiver request available in the California Non Calculating folder. 

California overview (1041)