Q. What I don't understand is , why MI-1050 9e. says Claimed as Dependent and shows 1500 instead of full exemption of 5400 in 9a., when I am NOT going to claim him at all.
A. The rule in MI is the same, as on the federal return; if he qualifies as somebody else's dependent, he cannot claim himself, even if that somebody else doesn't actually claim him. There is no longer a consequence, on the federal return, because exemptions were eliminated in 2018.
In the personal info section, you entered:
1. Another Taxpayer CAN claim me as a dependent ? YES
2. Will They ACTUALLY claim me as a dependent ? NO
That info carries over to the state return.
Q. This is where I need to to interpret correctly that even if my son is NOT claimed by anybody,
MI-1050 will not allow full exemption since he is considered as "dependent" all along.
Is that correct ?
A. Yes.
You go on to say:
Do either of these statements apply to the other Taxpayer (which is me)
3. This person is required to file a tax return - NO
4. This person is filing taxes for reason OTHER than getting a refund for taxes paid - NO
Q. So technically the 1st Question should be answered as NO. Right?
A. No. Questions 3 & 4 are another way of determining whether he CAN be claimed as a dependent. If you answer 3 & 4 as No, TT will uncheck the box on the federal return. What I don't know, for a fact, is whether that same rule applies to MI. I don't find it in the MI instructions. Since TT is not allowing it, it probably doesn't.
