How can I enter a payment on line 13z of Schedule 3 with TurboTax? I'd like to enter one that I made by mistake last year for 2021. Or is there a better place to do that?

[AmyC]

In the federal section, go to Deductions and Credits, then scroll down to Estimates and Other Taxes Paid. Select whichever one matches your payment and the program will carry it to the correct place. If you need more help, you can reply with what type of payment you are trying to enter. 

[tomwoodburn]

Thanks, I do need more help because my payment doesn't match any of the choices under Estimates and Other Taxes Paid.

The payment is an unusual one. I made it last April when I thought I was paying the tax due on my 2020 return. Unfortunately, I had a senior moment and mistakenly applied the payment to the 2021 tax year, not 2020. I didn't know how to fix that, so I made a separate payment for 2020 and let the first payment sit. Now I'd like to report that first payment on my 2021 return. The best place seems to be Line 13z on Schedule 3, but TurboTax won't let me do that.

[PatriciaV · Accepted solution]

Yes, the IRS would have applied your 2020 payment to your 2021 tax balance if you designated it that way.

This payment should be reported on Form 1040 Line 26 (2021 estimated tax payment and amount applied from 2020 return) rather than on Schedule 3 as an Other Credit.

Go to Deductions & Credits >> Other Income Taxes >> 2020 refund applied to 2021 federal taxes, and enter the amount you paid. Although the description doesn't exactly match your circumstances, your entry will report your payment on the correct line of your 2021 return.

[tomwoodburn]

Thanks AmyC and PatriciaV for your help. Your suggestions solved my problem and the IRS processed my return last week. I was afraid they might notice that my mistaken payment wasn't actually an estimated payment or that my 2020 return didn't actually have a refund to apply to 2021, but they didn't. Any insights there? Just curious.

Thanks again.