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 Withholding on California source income payments

Unless certain exceptions apply, those who make payments to nonresidents must withhold and send to us 7 percent of all gross payments that exceed $1,500 in a calendar year.

This withholding does not relate to sales of California real estate. See our website for updated information on real estate withholding.

New procedural information available

We currently have new procedural information about nonresident withholding on payments of California source income. These procedures apply to those who pay either nonresident independent contractors or other nonresidents who receive California source income. 

Updates coming in January 2009

Check our website in January 2009 for updated resident and nonresident withholding information. You’ll access the information by searching for withholding on our homepage. Updates will include:

  1. Online registration for our spring 2009 nonresident withholding workshops.
  2. FTB withholding forms:
    • 592, Quarterly Resident and Nonresident Witholding Statement.
    • 592-A, Foreign Partner or Member Quarterly Withholding Remittance Statement.
    • 592-B, Resident and Nonresident Withholding Tax Statement.
    • 592-F, Foreign Partner or Member Annual Return.
    • 587, Nonresident Withholding Allocation Worksheet.
    • 588, Nonresident Withholding Waiver Request.
    • 589, Nonresident Reduced Withholding Request.
    • 590, Withholding Exemption Certificate.
  3. Revised FTB Pub. 1017, Resident and Nonresident Withholding Guidelines.
  4. News and procedure tools to help withholding agents apply California resident and nonresident withholding on payments to:
    • Entertainment-related nonresident independent contractors.
    • Nonresident independent contractors.
    • Nonresidents who receive other types of California source income.
    • Beneficiaries of estate or trust distributions. (This can apply to resident or nonresidents.)
    • Partners or members receiving partnership or LLC distributions.

Have questions now?

Contact us:

  • Website: ftb.ca.gov – Search for withholding on our homepage.
  • Phone: 888.792.4900 or 916.845.6262 (not toll-free).

Email: wsc.gen@ftb.ca.gov. Type nonresident withholding in the subject line. This is not a secured email address. Please do not send confidential information.