Amend MI state tax return after IRS adjusted AGI

[bgkr]

I received CP12 notice that explains why CTC and RRC were increased than what was claimed on my 2021 tax return.

Also, HSA deductible amount was adjusted (they said it is not allowed) by IRS to an amount $650. Therefore, the AGI was increased by $650.

Question: Do I need to re-file/amend MI state tax return due to this adjustment from IRS on Federal 1040? (Note: I already received my MI state refund for 2021 tax year).

Below link gives some info but it says to use Federal Amended Return and that's confusing as in my case there's no Federal Amended Return (or not needed since IRS corrected it already) !!

https://www.michigan.gov/taxes/questions/iit/accordion/amended/if-the-internal-revenue-service-chang...

[NCperson]

@bgkr - Adjustments to RRC and CTC are federal tax credits and have no impact on a state return.

However, many states, including Michigan,  use AGI as the starting point to calculate state taxes, so a change to AGI is going to affect state taxes.  Look at Line 10 of your Michigan tax return....

[bgkr]

My question:

When the state return was already filed and refund issued, do I need to refile as IRS adjusted AGI in the federal return?

And, is it possible to amend only the state return without amending Federal (as it’s not necessary)?

[NCperson]

@bgkr - if the IRS already made all the adjustments to the Federal return, then you would only need to amend Michigan

any idea why the IRA adjusted the AGI? what are the circumstances of your HSA....it is just unusual..... was the $650 on your W-2 (box 12 COde W) AND you entered that number elsewhere in turbo tax so that it also ended up on Line 10 for Form 1040?  Just let's be sure the IRS adjustment is correct before fiddling with Michigan, 

[bgkr]

As I mentioned in the beginning of this post, IRS adjusted $650 on the HSA. That is, it said $650 from the total HSA deduction amount is not eligible/qualified as HSA deduction. What it means is the $650 will not be tax exempt. Hence, the AGI is now $650 more than what was originally filed in the return.

 I’m not sure if you are tax expert or user like me but thanks for your response.