What Is California Form 592 and Who Must File It?

California Form 592, the Resident and Nonresident Withholding Statement, is an informational return filed with the state’s Franchise Tax Board (FTB). Its function is to report the total amount of state income tax withheld from payments made to nonresidents for services performed within California or from other California-source income. Withholding agents use this form to reconcile their periodic withholding deposits and to allocate the total amount withheld among the individual payees for the calendar year. The information reported allows the state to credit the proper amount of tax to each nonresident payee’s account when they file their own California income tax return.

Determining Filing Requirements

A filing requirement for Form 592 is triggered when an individual or entity acts as a “withholding agent.” This term applies broadly to any business, fiduciary, or individual who, in the course of their trade or business, makes payments of California-source income to nonresident payees. This includes payments from a California business to an out-of-state independent contractor for services performed in California or a property manager remitting rent to a property owner who lives outside the state.

Payments that necessitate withholding include compensation for services rendered in California by independent contractors, payments of rent or royalties from California-based assets, and prizes or winnings. Distributions of California-source income to nonresident partners, members of a Limited Liability Company (LLC), or beneficiaries of an estate or trust also fall under these rules. The standard withholding rate is 7% of the gross payment, though the FTB may authorize a different rate.

Withholding is required on total payments exceeding $1,500 in a calendar year. A withholding agent has the option to not withhold on the first $1,500 of income paid to a nonresident, but withholding must begin once payments surpass this threshold. Certain payees are exempt from this withholding, which would remove the need to file, including California residents, corporations qualified to do business in the state, and tax-exempt organizations.

Information and Documentation for Form 592

The withholding agent must have the payee’s full legal name, complete address, and a valid Taxpayer Identification Number (TIN). The TIN is a Social Security Number (SSN) for an individual or a Federal Employer Identification Number (FEIN) for a business entity.

Form 592-B, the Resident and Nonresident Withholding Tax Statement, must be prepared for every payee from whom tax was withheld. This form details the total income paid and the exact amount of California income tax withheld for that specific payee during the calendar year. The agent must send a copy to the payee, which provides an official record for their tax return. The withholding agent does not submit Form 592-B to the FTB.

The “Schedule of Payees” section on Form 592 requires the agent to list each payee, their TIN, the total amount paid, and the total tax withheld for the period. The totals from this schedule must reconcile with the total tax payments made. If paying by mail, the agent must also include Form 592-V, the Payment Voucher for Resident and Nonresident Withholding, along with a check or money order for the payment.

The agent must use the correct version of the form for the taxable year, which is available on the FTB’s website. The taxable year on the form must correspond to the year in which the income was paid and the tax was withheld.

Filing Deadlines and Submission

Form 592-B must be furnished to each payee by January 31 of the year following the close of the calendar year. For the 2025 tax year, the deadline is January 31, 2026.

Form 592, which reports the withholding to the FTB, is filed periodically throughout the year. The due dates for the 2025 tax year are April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026.

For agents choosing to file by mail, the package must be sent to: Withholding Services and Compliance MS F182, Franchise Tax Board, PO Box 942867, Sacramento, CA 94267-0651. The mailed submission must include the completed and signed Form 592 and payment, if applicable. Payments should be made payable to the “Franchise Tax Board” and include the agent’s TIN and the relevant tax year on the memo line.

Alternatively, agents can submit their information electronically using the FTB’s Secure Web Internet File Transfer (SWIFT) system. This method is mandatory for withholding agents reporting 250 or more payees. The agent uploads a file with the Form 592 information through the SWIFT portal and can make any associated payment electronically.