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Maine NR state return 2023 desktop state tax paid on sale of second home not transferred to line 25b on form 1040ME
Looks like a bug with the ME state 2023 desktop version with the amount of state tax withheld from a sale of a second home is getting classified as "other" but that "other" amount is being transferred into line 25a on form 1040ME. It should be going to line 25b as it has in the past for "other". My e-filed Maine state return was rejected because line 25a did not match all 1099's. On the Maine form 1040ME line 25b instructions it says put "2023 estimated tax payments" and "include any REAL ESTATE WITHHOLDING tax payments" yes, it's in all caps and in bold on the form ; )
Work around was to go into the tax worksheet and zero out the "other" field and enter that amount in the state estimated taxes paid area with the date that the taxes were paid from the real estate settlement docs. That moved the tax paid from line 25a into 25b. I e-filed again and waiting a few days now to see if that one is accepted.
Note, doing an override on lines 25a and 25b on form 1040ME will not work for e-file as the program will not allow an e-file with those overrides.