Maine Student Loan Credit - Software Errors

[MaineTaxPayerUS]

For the Maine State Student Loan Credit, software does not properly clarify that the STEM checkbox only applies if you took the EOTS credit previously for years, 2019, 2020 and 2021. Software prompts for all eligible loan payments, improperly creates multiple forms for the same taxpayer and adds all the credits applied to he state refund despite there being an annual $2,500 or $3,500 limit, depending on STEM applicability. Software does not flag error after final  return reviews. Software also does not notify user that additional documents must be supplied for 1st time applicants.

Called support 3 times to convey error to confirm and log need for update. Response was there are no items open in the community, no errors exist.

[MaineTaxPayerUS]

Related Support ID# is[number removed]

[BrittanyS]

We can investigate your concern that TurboTax incorrectly calculates the Maine Student Loan Credit and does not give accurate information. However, it would be helpful to receive a token instead of trying to recreate your return.  I prepared a generic return and did not get the multiple forms created, as you are experiencing.  If you provide a token, I can look over what you see regarding your return. A token is a number entry provided by TurboTax that provides a sanitized version of your return.  Sanitized means that all your personal identification information is removed from the file you provide, and I'll only be able to see numbers that have been entered.  I cannot see any information about your name, address, or SSN.

To send us a token, please do the following: 

TurboTax Online:  

1. Click Tax Tools in the menu to the left.
2. Click Tools, and then
3. Click Share my file with Agent.
4. A pop-up message will appear. Click OK to send the sanitized diagnostic copy to us.

TurboTax Desktop:

1. Select the Online menu if the customer is using Windows. Select “Help” if using a Mac.
2. Select Send Tax File to Agent.
3. A pop-up message will appear, and the customer will select, Send. If using Mac, "Send Tax File to TurboTax Agent." 

Provide the token number that is generated onto this thread.  At the bottom of your reply (with the token), add "@BrittanyS" so I will be notified.  Also, please provide which software you are experiencing the issue in—for example, what online or desktop version?

@MaineTaxPayerUS 

[MaineTaxPayerUS]

Token 1067768

Desktop Home & Business

@BrittanyS 

[BrittanyS]

Thank you for providing the token.  Can you clarify if the two entries for the Education Loan Credit entered are for two separate loans or a double major?  When I enter the information into TurboTax Desktop Home & Business, I do not get the duplication of forms.  However, if I enter the entries separately, it allows the credit twice, which is permitted if the degree is for a double major and the degree earned was based on different courses. 

@MaineTaxPayerUS 

[Edited 02/10/2023 | 1:05 PM PST]

[MaineTaxPayerUS]

Separate loans for the same major, mechanical engineering. It is a STEM degree but I did not take the previous EOTS previously due to not qualifying. There is a requirement not noted in the software prompts. It just asks is it a STEM degree,  not the EOTS and year additional requirements that must also apply. Also prompt asks for loans, not by degree. 1st time applicant documents needed to be mailed in are not specified in prompts.

I can self limit to $2,500 myself if confirmed I am correct but recommend software update to clarify prompts, if so.

@BrittanyS

[BrittanyS]

I followed up with the Maine Department of Revenue regarding the STEM degree qualifications.  You must have previously claimed the EOTS for tax years 2019, 2020, or 2021 for the bachelors or associate STEM degree.   Therefore, if you did not take the EOTS credit, you would only qualify for the $2,500 credit.  Also, I followed up on the double major.   You can only claim both loans if the amount is up to $2,500.  For example, you could claim the first loan of $2,424, and for the second loan, you could only claim $76, giving a total of $2,500 unless it was for a double major with different courses. You could claim the $2,500 twice if you have a double major.  I have put in a request to have additional instructions added to the software for the Maine Student Loan Credit.  

@MaineTaxPayerUS 

[MaineTaxPayerUS]

Thank you.

@BrittanyS 

[emtco]

Hi there @BrittanyS ,

It looks like you requested this correction to the software back in February, but I just did my taxes and encountered this same exact problem. Why was this not fixed? It let me claim $3500 instead of $2500 because I was a STEM major (even though I am not eligible because I did not receive the EOTS previously because I was not eligible). It also let me claim $3500 X 2 because I entered two different student loans (even though there is a max of $2500/$3500 per person). So instead of the $2500 I am eligible for, it gave me a $7000 credit. Now I'm going to have to amend my taxes because of this error that you were notified of in February.