Backup withholding (resident and nonresident withholding)īackup withholding is a type of income tax withheld on specific income types when a payee fails to: Your payer must take 7% from your CA income that exceeds $1,500 in a calendar year. You may need to prepay tax if you receive a non-wage payment, such as: Nonwage withholding (nonresident withholding)
The amount of tax withheld is determined by the following. We refer to the amount of wages taken from your paycheck for state and federal income taxes as withholding. Wage withholding is the prepayment of income tax. When you file your tax return, you can claim all types of withholding.
