Form 592-B is the California Resident and Nonresident Withholding Tax Statement, a document that tells you how much of your California-source income was subject to withholding and how much state tax was collected on your behalf. The person or business that made the payment (the withholding agent) sends it to you, not to the Franchise Tax Board. You keep it as your receipt and attach it to your California return to claim credit for the tax already paid.1Franchise Tax Board. Instructions for Form 592 Resident and Nonresident Withholding Statement
California requires withholding on payments of California-source income made to nonresidents, at a flat 7% on amounts above $1,500 in a calendar year.2Franchise Tax Board. Withholding on Nonresidents Independent contractor fees for work performed in California, rents from California property, royalties, and distributions from California partnerships or LLCs are the usual triggers. The 592-B is simply the paper trail for what came out.
What Form 592-B Shows
The form identifies both parties and the money. On the identification side, it lists the withholding agent’s name, address, and taxpayer identification number, and the same for you as the payee. The TIN can be a Social Security number, ITIN, FEIN, California corporation number, or California Secretary of State file number.
On the financial side, it shows total income subject to withholding and total California tax withheld. If backup withholding was collected because you didn’t provide a valid TIN, that amount is reported separately. California’s backup withholding rate is also 7%.3California Franchise Tax Board. 2026 Instructions for Form 592-B Resident and Nonresident Withholding Tax Statement
Check the TIN carefully. If the number on your 592-B doesn’t match the one on your tax return, the FTB will reject the withholding credit. For backup withholding, you must contact the FTB and provide a valid TIN before you file, or the credit will be denied outright.3California Franchise Tax Board. 2026 Instructions for Form 592-B Resident and Nonresident Withholding Tax Statement
How to Claim the Credit on Your California Return
Nonresidents and part-year residents file Form 540NR, the California Nonresident or Part-Year Resident Income Tax Return.4Franchise Tax Board. 2025 Instructions for Form 540NR Nonresident or Part-Year Resident Income Tax Return Enter the amount withheld on the appropriate line and attach your 592-B to the return. The FTB instructions are explicit: no 592-B attached, no credit.3California Franchise Tax Board. 2026 Instructions for Form 592-B Resident and Nonresident Withholding Tax Statement
Often the 7% withheld exceeds what you actually owe. The flat rate ignores your deductions and California’s graduated brackets, so over-withholding is common. The only way to recover the difference is to file an accurate 540NR; the refund doesn’t come automatically. The standard deadline is April 15, with an automatic extension to October 15, but any balance owed accrues interest from April 15 regardless.4Franchise Tax Board. 2025 Instructions for Form 540NR Nonresident or Part-Year Resident Income Tax Return
Receiving a 592-B signals a California filing obligation whenever your California gross income exceeds the FTB’s minimum threshold for your filing status. You can’t ignore California just because you live elsewhere.
If you’re a nonresident partner, member, or shareholder in a California pass-through entity, the entity itself handles the withholding and may file Form 592-PTE or Form 592-F instead of a standard Form 592. The downstream document you receive is still a 592-B, and you use it the same way.5Franchise Tax Board. Pass-Through Entity Withholding
If You Don’t Receive Your 592-B
Withholding agents must furnish the form to you by January 31 of the year following the calendar year of payment.3California Franchise Tax Board. 2026 Instructions for Form 592-B Resident and Nonresident Withholding Tax Statement If it doesn’t arrive, start with the agent. Most missing forms are a stale mailing address or a lost envelope. If the agent won’t respond, contact the FTB; the FTB already has the underlying data from the Form 592 the agent filed when remitting your tax.1Franchise Tax Board. Instructions for Form 592 Resident and Nonresident Withholding Statement
Don’t delay filing your California return while you wait. Late-filing penalties and interest run from the original due date. If the 592-B shows up after you file, amend the return to claim the credit.
Reducing Withholding Before It Happens
If your actual California liability will be well below 7% of the gross payment, you can ask the FTB to waive or reduce the withholding before the money changes hands. Form 588 requests a full waiver and should be submitted at least 21 business days before payment.6Franchise Tax Board. 2025 Instructions for Form 588 Nonresident Withholding Waiver Request Form 589 requests a reduced rate rather than a complete waiver. Foreign (non-U.S.) partners and members must use Form 589; a full waiver through Form 588 is not available to them.7Franchise Tax Board. 2026 Instructions for Form 589 Nonresident Reduced Withholding Request Without an approved waiver or reduction, the agent has to collect the full 7%.
If You’re the One Issuing Form 592-B
Withholding agents give the completed 592-B to each payee by January 31 following the calendar year of payment.3California Franchise Tax Board. 2026 Instructions for Form 592-B Resident and Nonresident Withholding Tax Statement The 592-B does not go to the FTB; the FTB receives its copy of the information through the Form 592 you filed when remitting the withheld tax.1Franchise Tax Board. Instructions for Form 592 Resident and Nonresident Withholding Statement
Form 592-B is classified as a payee statement. Missing the January 31 furnishing deadline exposes you to payee statement penalties under California Revenue and Taxation Code Section 19183, which pulls in the federal penalty schedule by reference.8LII / Legal Information Institute. California Code of Regulations Title 18 18662-8 – Reporting and Remitting Failing to withhold the correct amount in the first place makes you personally liable for the uncollected tax, plus interest and penalties, unless you can show reasonable cause.