Thank you for your response. If I can't include this amount, my refund goes down. I assume when entered it is subtracting it from my Michigan income reported/carried over from Federal because it was a qualified education expense withdrawal. Turbotax asks if it is a "qualified withdrawal included in Federal as income", which I believe it is. However, if that is true, my concern is that since it was entered as income in order to take the education credit, I'm not sure if Michigan still considers it a qualified withdrawal in this case, since I took the Federal credit.
