Form 588 2017-2025

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California law requires withholding of tax completed by the person or entity having the control, receipt, custody, disposal, or payment of items of California sourced income or California distribution from nonresidents of California. Payers who withhold tax on nonresidents are called withholding agents.
California (CA) State Withholding Tax Laws Non-California residents, including U.S. citizens who are residents of other states, are subject to State income tax withholding of 7% of gross if the total payments excel $1,500 during the calendar year.
FTB Form 588, Nonresident Withholding Waiver Request Nonresident payee who qualifies can use Form 588 to get a waiver from withholding based generally on California tax filing history. Form 588 must be submitted at least 21 business days before payment is made.
Nonresident Withholding Waiver Request General Information. A Purpose. Use Form 588, Nonresident Withholding Waiver Request, to request a waiver on withholding payments of California source income to nonresident payees.
Use Form 587, Nonresident Withholding Allocation Worksheet, to determine if withholding is required and the amount of California source income subject to withholding. Withholding is not required if payees are residents or have a permanent place of business in California.

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Withholding is not required if: Total payments or distributions are $1,500 or less. Paying for goods. Paying for services performed outside of California.

form 588 california 2024