Hi,
In Michigan Schedule 1 line 1, the entry is for gross interest, income and dividends from other than Michigan, further in the instruction it says "You may reduce this income by related expenses not allowed as a deduction by Section 265(a)(1) of the Internal Revenue Code (IRC)." In Michigan tax code (R 206.6) gives an example of these fees (investment counseling fees, bank charge, brokerage fees, etc).
So when doing my taxes Turbo Tax asks if I have any of these fees which I have (namely tax prep and safety deposit box) and I entered them. However, I noticed that when the gross interest, income and dividends amounts are carried over they are not reduced by the expenses which is my interpretation of the Michigan rule.
Is this an error of the program, is this subtraction of the expenses somewhere else or am I misinterpreting the instruction. I did have a communication on this subject with the Michigan Department of Treasury but it was a number of years ago. Not sure if its still applicable.
Could you let me know your interpretation and if it is an error in the program.
Thank
