3065889
We had to purchase the state product for Maine the last 2 years to file a return for S-Corp shareholder earnings that were from a Maine corporation. This year we got a letter from the State of Maine Revenue Services that there was a computation error in the return for 2022. After completing the TT interview questions for 1040 ME Schedule 1S, the total subtraction amount in Line 29 of that form is the source for the Income Subtraction Modifications Line 15b and this line in the 1040 ME is automatically populated by the TT software. The amount TT put in this line was not the amount in the source form Line 29. This is clearly a software error that Maine's system caught. Additionally, the withholding done on behalf of the shareholder by the S-Corp on a 1099ME was entered by the TT software on line 25b of the 1040 ME and that was also incorrect. 1099ME witholding is supposed to be entered on line 25a and because it wasn't, we didn't get our refund and had to call Maine and then fax them the 1099ME to prove we were entitled to the refund. TT's interview concerning the withholding was misleading and asked if there was any pass-thorugh withholding done by a S-Corp, but it didn't ask what type and there is a difference between Maine witholding accounts for real estate tax withholding and 1099ME shareholder witholding. Turbotax is not handling this correctly. Because of these errors made by the TT software, it appears I will now need to file an amendement for the state return in WI where I live because the return had the wrong credit amount for taxes paid to Maine. Can TT get these bugs fixed for their 2023 Maine software? We may just submit a paper return to Maine in 2023 or use their efile tool and save the $45 on the TT state software and the TT $25 filing fee for Maine we spent in 2022. Hardly worth it to get the small refund we got and the timw I had to spend on the phone with Maine to get our refund. Postage to mail the return would have been a lot less...
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here we are in 2025 filing 2024 tax returns and turbotax still hasn't fixed this same issue. I have complained about the 1099ME and where turbotax puts it since I was audited about that many years ago. You would think that a company like TT would have programmers smart enough to fix this but evidently the answer is that they do not. I had to file paper again this year because of this error. Last year I discovered filing Maine taxes on the Maine portal; I would have done that again this year but there was a glitch in the program for a single person that was going to take a few days to fix. At least, they plan to fix it. Last year the TT spokesperson laughed at me when I asked that he pass it on; he stated that there was no way that TT had made a mistake.
Another plus to the Maine tax portal: you can upload the 1099ME form.
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