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Withholding on Trust and Estate Distributions

We administer withholding laws pertaining to trust and estate distributions of California source income to both resident and nonresident beneficiaries.

Withholding exemptions

Withholding exemptions apply to:

  • California nongrantor trusts.
  • Estates where the deceased was a California resident at the time of death.

Payees use Form 590, Withholding Exemption Certificate, to certify their resident status.

Withholding by another entity

Trusts and estates that have been withheld upon by another entity:

  • Use Form 592, Resident and Nonresident Withholding Statement, to flow-through the withholding credit to their California resident and nonresident beneficiaries. Send payments and completed Forms 592 and 592-V, Payment Voucher for Resident and Nonresident Withholding, to us by the due dates shown on Form 592.
  • Provide resident and nonresident beneficiaries with either an electronic Form 592-B or a printed Form 592-B, Resident and Nonresident Withholding Tax Statement, at the end of the calendar year to show the total amount distributed to them and the total credit withheld.

Backup withholding

Backup withholding - Payers who perform federal backup withholding must also withhold and remit 7 percent of a reportable payment to us.