The Michigan Tier 3 Standard Deduction defaults to $40,000 (married filling jointly) and is not being reduced for prorated income earned in that state. In summary:
1. I have tried Deleting the Michigan Return and started over
2. Take Standard Deduction is selected in software
3. I have no pension and retirement income allocated to state of michigan (although I have pension and retirement income in AZ). The pension worksheet properly shows the federal pension and retirement income with none allocated to MI.
4. The software will not let me override the $40,000 field for the default standard deduction (as I believe it should be prorated based on schedule NR line 18 percentage
How can I fix?
