Maine NR state return 2023 desktop state tax paid on sale of second home not transferred to line 25b on form 1040ME

[r-yttri]

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.

[auntdot]

I ran into the same problem for 2024, non-Maine resident trying to file through Turbotax.  Will try mailing the forms, even though I already paid to do a Maine e-file :(  Please fix this Turbotax! 

[DianeW777]

Thank you for your update. We can take a look at your return if you like.  See the information below.

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax Desktop for Windows
2. Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number.
   • Enter your email used for TurboTax > Enter your code > Send
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.
   • *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')

We will be able to see exactly what you are seeing and we can determine what exactly is going on in your return to provide you with a resolution.

[auntdot]

Thanks for your help.  States are Massachusetts and Maine.  

206120353-29228624

[DianeW777]

Thank you for your file and bringing this to our attention and I will move your suggestion forward.  

As explained by the earlier post, it does seem like a manual adjustment may allow you to e-file. In TurboTax Desktop take the following action.

1. Open your return and change to 'Forms' (upper right)
2. See the Forms list on the left > Scroll to the ME return
3. Click on the 'Tax Pymt Wks' > on line 13d right click to override and clear the 'Other state tax withholding' and enter zero (0).
4. Click on Form 1040ME > Scroll to line 25b and you will see your withholding payment (there should only be one and nothing on line 25a)
5. Go back to Step-by-Step and continue to try to e-file again.

@auntdot 

[auntdot]

Thanks- I followed those steps.  But when the program does the final review check, it says "Tax Withheld should not be overridden and changed for electronic filing.  Using an override can prevent the cross-checking that's important to an accurate return.  Make the change on the Form W-2 or Form 1099 in the Federal program to ensure an accurate tax return.  To cancel the override, click on the overridden field and choose 'Cancel Override' from the Edit menu.  When I try to transmit, it says "We Need to Make One More Check" and keeps bringing me back to the "Form 1040ME: Line 25a - Tax Withheld should not be overridden and changed...."etc. with the same message, and will not let me transmit.  Advice?

[r-yttri]

From the original post.....    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.

This worked, e-file accepted and no issues for me.

[BrittanyS]

Try the steps provided by r-yttri.  These steps should get you through the loop.