FTB Says - Pay California source income to nonresidents of California? Save some for us!

The California Franchise Tax Board has released an online form to request a reduction of the withholding amount by itemizing expenses against the California source income.

Those who pay California source income to nonresidents of California, with certain limited exceptions, must withhold and send us 7 percent of all payments that exceed $1,500 in a calendar year. (R&TC Section 18662)

However, be prepared to finish the online form in one sitting. As mentioned in this announcement , you only have 20 minutes to complete each page. This might sound like plenty of time, but stepping a way from the computer could result in being logged out and having to start over. The site suggests that you

Expect to spend 15 minutes to one hour to complete your entire form.