Form 589 - Nonresident Reduced Withholding Request (Online Submission)
Those who pay California source income to nonresidents of California, with certain limited exceptions, must withhold and send us 7 percent of all payments that exceed $1,500 in a calendar year. (R&TC Section 18662)
Before nonresidents of California receive payment of California source income, they can use Electronic Form 589, Nonresident Reduced Withholding Request to request a reduction of the withholding amount by itemizing expenses against the California source income. If we approve the request, we provide the payer and payee a letter stating the reduced withholding amount. If we deny the request, we provide the payee a letter of denial.
Items you need
Have the following items available before you begin:
- Withholding agent information.
- Payee information.
- List of expenses.
- Dates of services.
- If income due to rents or royalties, a separate Electronic Form 589 is required for each property.
If you submit an Electronic Form 589, Nonresident Reduced Withholding Request:
- And you need to include additional information, for example, Internal Revenue Service Form 8804-C, Schedule E, expense breakdowns, etc., you must fax the documentation to us at 916.845.9512. In your fax transmittal, include your name, taxpayer identification (ID) number, and the Electronic Form 589 confirmation number.
- Do not use the web browser navigation buttons. Using the web browser navigation buttons may result in lost or incorrect information. Use the “continue” or “back” button at the bottom of each page.
Acceptable identification numbers are:
- Social Security Number (SSN)
- Individual Taxpayer Identification Number (ITIN)
- Federal Employer Identification Number (FEIN)
- California Corporation Number (CA Corp No.)
- California Secretary of State LLC Number (CA SOS File No.)
Time limit and total time
You have up to 20 minutes to complete each page. For security purposes, if you take longer than 20 minutes on any single page, you will be automatically logged out and will need to restart your form. Expect to spend 15 minutes to one hour to complete your entire form.
An asterisk (*) indicates a required entry.
Do not round cents to dollars
- Enter the amounts with dollars and cents (e.g., 1000.25).
- Do not enter negative amounts.
Allow ten business days to process the Form 589 Online Submission.
You can exit at any time by clicking the “Exit Form 589” button located at the bottom of each web page. When you confirm that you want to exit, we will delete all the information you entered. We recommend that you close your browser when you are done to ensure the highest level of security.
- California Source Income
- Real Estate
- Trusts and Estates
- Partnerships and LLCs
- Backup Withholding