MD Form 505: Nonresident return does not fill line "45." MD denied my refund until I called them.

[yfinkle]

From MD Comptroller below.

Your return was not processed as submitted because the MD tax paid by the PTE was on the wrong line. $XXX.00 tax paid should be on Line 45, not Line 46.

I have corrected the return and you should receive your refund within the next 7-10 days.

----

I checked and my tax 2017 was filled the same way, nothing on line 45, yet it was accepted.

[IreneS]

If you entered the withholding correctly on the K-1, the MD withholding should flow to Form 505, line 45.

You didn't say whether the K-1 was from a partnership or an S-Corp.  The steps are the same, but the box numbers vary:

• In a K-1 from a partnership state withholding is reported in Box 13, Code W
• In a K-1 from an S-Corp, state withholding is reported in Box 12, Code S

To make the entry for state taxes withheld, follow these steps:

1. When in the K-1 interview, you will see the screen, Enter Box 13 Info.
2. Select W from the list and enter the amount.
3. On the next screen, Enter Code W Detail, mark the box Taxes and State Income Tax Withheld
4. In the section below the grey line select the State Name from the list and enter the amount listed in Box 13 Code W.

This figure will automatically flow to the MD return, line 45.

If the K-1 is from an S-Corp follow the same steps, using Box 12 and Code S.

[yfinkle]

Mine is an S-Corp. The only place that I can enter what you are talking about is in the Federal k1 section.  In the MD Tax Q/A I'm just typing in the "Nonresident PTE Tax."  Even after entering this it leave line 45 blank.  My k1 from my accountant does not have a "box 12 Code S."  It only has nonresident tax paid by this PTE.

[IreneS]

Your method won't put the tax in the correct place.
Make the entries on the federal K-1.  Enter it as if your accountant had put it  in box 12 with Code S.  This way the tax will flow to MD 505 in the correct place.

[yfinkle]

Okay I see that this works but this is not intuitive at all, is TurboTax going to fix this so that it actually makes sense?  It appears that based on this information, I have to NOT use the PTE line in the MD tax and instead follow your instructions.  I should be able to take information from Accountant's k1 and apply it here.  Are you telling me that my accountant who prepares the k1 is supposed to be adding "box 12 Code S" instead of saying that we did a PTE payment?  I feel like this is kind of insane....

[pmitch]

thank you for this work around, but I now have the issue of being incorrectly charged interest on the MD return because I guess it assumes only one payment was made on my behalf at the end of the year when in fact quarterly payments were made by the PTE on my behalf...how should this be addressed within Turbotax?  thank you

[fanfare]

@pmitch 

You are waking up a thread that is very old.

You might want to start your own question.

[DianeW777]

If you had state or federal withholding on your K-1 you want to be sure it's included with your other payments on your tax return such as withholding from wages. TurboTax has an entry point for all other federal or state income tax withheld.  You can follow the steps below to enter it outside of the K1 so that it flows to your state return and federal return.

• Sign into your TurboTax account > once inside the return select Deductions and Credits 
• Scroll to Estimate and Other Taxes Paid > Show More or  Start/Revisit/Update beside Income Taxes Paid > Scroll to Other Income Taxes Paid in 2022
• Continue to Start Withholding not already entered on a W-2 or 1099 (enter federal and/or state)

This will allow both federal and state additional withholding not entered in any other location.

@alexnyu10