Chat with an FTB Representative

Tax News
Big Business

S Corporations – New Withholding Rule for the 2009 Form 100S

Beginning tax year 2009, S corporations may claim withhold at source on their S corporation return, but not in excess of their tax liability. Since S corporations are taxed at the entity level, they can choose to:

  • Allocate the withholding credit to their S corporation shareholders.
  • Claim the withholding on the S corporation tax return (not to exceed the amount of tax).
  • Use a combination of both the above.

S corporations may not receive a refund of withholding on Form 100S.

Next Step-Allocating Withhold at Source

Any remaining withhold at source credit in excess of the tax liability must be allocated to the S corporation shareholders using Form 592.

Need more information about withholding?

Web: Go to ftb.ca.gov and search for nonresident withholding
Phone: Within the U.S., call: 888.792.4900
Outside the U.S., call: 916.845.4900
Fax: 916.845.9512
Email: wscs.gen@ftb.ca.gov

(This is not a secure email address. Please do not send confidential information.)

Back to April 2010 Tax News