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dbow58
Returning Member

Ongoing Bug in TT Deluxe Desktop Transfer of ME State Withholding to 1040ME Form

For the third year in a row, TurboTax transferred the Maine income tax withheld and reported to me on a  1099ME to the wrong line on the 1040ME form.  Since TT doesn't have the option to enter a 1099ME in the federal program, I entered the Maine state withholding amount from the 1099ME under the federal return Deductions and Credits - Other Income Taxes - Withholding not already entered on a W-2 or 1099, in the other state withholding box.  The 1040ME state withholding tax payments go on line 25a unless they are real estate withholding tax payments.  TT is transferring the payment amount I entered in the other state withholding to line 25b of the 1040ME which is the line for estimated taxes and real estate withholding tax payments.  In the ME state interview, TT does not ask you if the withholding was for real estate tax payments and just assumes it was and enters the amount on Line 25b of the 1040ME which is not correct.  For 2021 and 2022, I used TT for ME and was expecting a refund both years.  Instead I got bills from ME for taxes owed because TT did not enter the ME withholding in the corrrect line on the 1040ME, and ME's systems did not reconcile my 1099ME withholding and sent me a tax bill instead of my refund.  In both years, I had to dispute the bill with ME.  Last year the ME tax rep explained the reason this happened was because I entered the withholding amount on the wrong line of the 1040ME and told me it was supposed to be on Line 25a.  I informed him that TT was doing this and that ME needed to tell TT to get this straightened out in its ME software. This year the TT software made the same error/assumption that the other state withholding I reported in the federal section of TT was for real estate withholding tax payments.  Since I knew this was wrong, I overrode/cleared the amount TT entered on line 25b of the 1040ME and manually entered it on line 25a.  Line 25a is for W-2, 1099, and 1099ME withholding tax payments.  The 1099ME form is used to report pass-through withholding payments made by a PTE ofor a nonresident partner's or shareholder's share of the business income.  After paying $25 to efile the ME return, TT would not efile because of the override I made to correct the TT error.  I contacted TT technical support, and the rep connected to my laptop screen.  She could see the issue but was unable to resolve it and said I would have to mail the return.  So $45 for state SW and $25 for an efile that didn't work, plus postage if I mailed the return.  I requested a refund from TT for the ME state SW and the efile fee.  After 3 years of this, it is frustrating that this issue is not fixed.  Maine in the meantime developed its own efile portal for ME taxpayers.  Today, I used their portal to manually enter all the required information and attached my federal return that I filed with TT Saturday and all went smoothly.  ME's portal asks whether or not there are real estate withholding payments on the 1099ME, so the withhodling amounts are entered correctly on line 25a or 25b!  It is unfortunate TT can't get this right in its software for ME.  

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