Question

clyde, a resident of california, sold a california property during the year. he comes into the tax office with a copy of a 2024 form 593, real estate withholding statement. what should you do with the information on this document?

Answer 1

Use it to claim a credit for California real estate tax withheld when you prepare Clyde’s California return.

Steps:
- Enter the "amount withheld" shown on Form 593 as California income tax withheld on his California return (Form 540 or Form 540NR in the line/field for state tax withheld or withholdings).
- Attach a copy of Form 593 to the paper return (or enter the withholding in your e‑file software’s CA real estate‑withholding section and retain the form for your records/upload if the software asks).
- Verify the seller name/SSN, property and withholding amounts match Clyde’s records.
- Remind Clyde that, as a CA resident, the withholding is a prepayment/credit against his CA tax — he must file a return to reconcile liability and get any refund of excess withholding.

If you suspect the withholding was incorrect (for example, if a certificate of nonwithholding should have been filed), advise him about options to resolve it (refund via his return or contacting the FTB).