You are correct MI now requires this new MI form 5889 to support the addition of costs for MI royalties as well as the subtraction of income from the MI royalties on the MI Schedule 1. The MI form 5889 is not supported in TurboTax.
In the past the information was taken from the federal forms (Schedule E or C as applicable) directly to the MI Schedule 1 and those federal schedules were part of the MI e-file to support the amounts.
For tax year 2023 to claim the MI Gas, oil extraction deduction on your MI state taxes, you will need to print/mail your MI state return. However, you can choose not to claim the deduction and e-file your return.
In the MI state interview "Edit" the income section, "Start/Revisit" the "Michigan Gas, oil...extraction" topic and select "No" when asked if, "you claimed MI gas, oil...extraction income or expenses on your federal return?"
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