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California Non-Resident Withholding - “You make it, they take it”....for California 

If you receive or pay California income, you must withhold taxes regardless of where you live, enter into a contract, or receive payment.

Withholding requirements

Nonwage withholding is required when a nonresident:

  • Provides services in California, such as independent contractors, performers, athletes, traveling nurses, public speakers.

  • Receives California income from pensions, distributions, real estate sales, and gambling winnings.

Nonresidents who receive California income

If you don’t live in California and receive California income, your payer withholds 7 percent from your income that exceeds $1,500 in a calendar year. When you file your tax return, you can claim this information as a withholding credit against your individual tax liabilities.

A payer (withholding agent) is the entity that pays you. Examples of payers include:

  • Promoter

  • Rental property manager

  • Partnership and LLC

  • Trust and estate


For more information click here:

https://www.ftb.ca.gov/individuals/withholding/nonwage-withholding/nonresident-witholding.shtml


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