Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
If I am not eligible for the federal 2020 Unemployment Compensation Exclusion because my modified adjusted gross income (AGI) exceeds the federal threshold, can I exclude that unemployment income on my Michigan individual income tax Return, MI-1040?
No, there is no authorization under the Michigan Income Tax Act to exclude unemployment income from the State income tax return. Thus, if the taxpayer does not qualify for the federal deduction, then all unemployment benefits included in federal AGI are taxable to Michigan.