Get the free Form 588

Use Form 588 to request a waiver or a reduced withholding rate on payments of California source income to nonresident vendors/payees.

How to fill out form 588

How to fill out Form 588

1. Begin by downloading the Form 588 from the official tax website.
2. Carefully read the instructions provided with the form.
3. Fill in your personal information, including name, address, and Social Security Number.
4. Provide the details of the entity if applicable, such as business name and Employer Identification Number (EIN).
5. Complete the section specifying the type of income for which you are claiming the exemption.
6. Review the list of states and check the ones applicable to your circumstance.
7. Sign and date the form at the bottom to confirm accuracy.
8. Submit the completed form to the appropriate tax authority as directed.

Who needs Form 588?

1. Individuals or entities that receive income from sources in the United States but are residents of foreign countries may need Form 588.
2. Foreign persons or businesses seeking reduced withholding rates or exemption on U.S. income should also complete Form 588.

People Also Ask about

Who is not exempt from California withholding?

Wages paid to nonresidents of California for services performed inside the state are subject to withholding for state income tax; only wages paid to nonresidents of California for services performed outside the state are exempt from withholding. California does not distinguish between U.S. citizens, U.S. residents, and

How do I opt out of withholding?

If an employee qualifies for exemption from withholding, the employee can use Form W-4 to tell the employer not to deduct any federal income tax from wages. This applies only to income tax, not to Social Security or Medicare tax.

How to claim nonwage withholding credit in California?

Claim your nonwage withholding credit on one of the following: Form 540, California Resident Income Tax Return. Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. Form 541, California Fiduciary Income Tax Return.

Who needs to fill out CA form 587?

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.

How do I know if I'm not subject to California withholding?

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

How do I claim exemption from California withholding?

In order to claim exemption from state income tax withholding, employees must submit a W-4 or DE-4 certifying that they did not have any federal tax liability for the preceding year and that they do not anticipate any tax liability for the current taxable year.

How do I request a waiver for California withholding?

Submit a request for a waiver at least 21 business days before making a payment to allow the FTB time to process the request. Online filing – Registered users can file Form 588 online through MyFTB. Log in to MyFTB. Select File a Nonresident Withholding Waiver Request.

What is the filing form 588?

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.

For pdfFiller’s FAQs

What is Form 588?

Form 588 is a tax form used by the California Franchise Tax Board for non-resident withholding for various types of income, such as payments made to foreign entities.

Who is required to file Form 588?

Form 588 must be filed by certain entities and individuals making payments to foreign entities that are not subject to California withholding tax.

How to fill out Form 588?

To fill out Form 588, provide the required information including the payee's details, nature of the payment, and certify the eligibility for withholding exemption as per California tax code.

What is the purpose of Form 588?

The purpose of Form 588 is to ensure compliance with California tax laws by reporting and withholding taxes on payments made to non-residents.

What information must be reported on Form 588?

Information that must be reported on Form 588 includes the payer's and payee's names, addresses, taxpayer identification numbers, type of income, and any claims for exemptions from withholding.