What Is California Form 592?
California Form 592 is used by withholding agents to report 7% backup withholding on California-source income. The form has two pages (Side 1 and Side 2) and must be filed quarterly with the California Franchise Tax Board (FTB).
If you make payments of $1,500 or more to a nonresident of California who does not have a permanent business address in the state, then you must file Form 592. In other words, any business or individual acting as a payer has to report withholding using this form.
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Part 1 – Withholding Agent Information
The first part of the form identifies the payer (the withholding agent). Here you will enter:
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Business or individual name
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Taxpayer Identification Number (TIN)
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Address
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Total number of payees
For example, if your company makes payments to three nonresident contractors, you must list them in this section.
Part 2 – Type of Income
Next, the FTB wants to know what type of California income is being withheld. The form gives you eight options (A–H):
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A: Payments to independent contractors
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B: Trust distributions
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C: Rents or royalties
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D: Distributions to nonresident partners, members, beneficiaries, or S corporation shareholders
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E: Estate distributions
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F: Elective withholding
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G: Elective withholding / Indian Tribe
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H: Other (you must describe)
As a result, the state can track the type of income being reported more accurately.
Part 3 – Withholding Calculations
This section calculates the total withholding due. The steps flow in order:
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Line 1: Total withholding, excluding backup withholding
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Line 2: Total backup withholding
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Line 3: Add Line 1 and Line 2
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Line 4: Prior payments not previously distributed
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Line 5: Amount withheld by another entity and now distributed
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Line 6: Add Line 4 and Line 5
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Line 7: Subtract Line 6 from Line 3 → this is the withholding due, which must be sent with Form 592-V to the FTB
For instance, if Line 3 totals $10,000 and Line 6 totals $2,000, then the amount due on Line 7 is $8,000.
Part 4 – Perjury Statement
Finally, the withholding agent must sign the perjury statement. This step confirms that all reported amounts are true and correct. Without this signature, the form is not valid.
Filing Deadlines for Form 592
Form 592 is due quarterly, and the deadlines follow the same schedule as California’s estimated tax payments.
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Submit Form 592-V when making payments.
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If you e-file, you do not need to use pre-printed red-ink forms.
Therefore, electronic filing is both faster and more efficient.
How 1099fire Can Help
Managing California Form 592 can be confusing, especially if you have multiple payees. Fortunately, 1099fire can make the process simple:
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CA 592 software for preparing, printing, and e-filing
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Automatic error checking for accuracy
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Bulk filing support for high-volume submissions
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Electronic filing with the California FTB
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Generate and deliver recipient copies
👉 Visit 1099fire.com today to save time and stay compliant.
Key Takeaways
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California Form 592 reports 7% withholding on California-source income.
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Filed by the withholding agent each quarter.
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Requires payer information, income type, and withholding calculations.
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1099fire software helps you file quickly and avoid errors.