State of Michigan took away by 16 year old's $1,500 exemption allowance which doesn't seem right
My 16 year old made $3,565 and we claimed him as a dependent on our return. TurboTax said he had a $1500 Michigan exemption and that he was due a $64 Michigan State tax refund since $152 was withheld and he only owed $88. He just got a State of Michigan Notice of Adjustment and they changed his $1500 exemption allowance from $1500 to $0 and said he wasn't getting anything refunded. I checked and everything looks correct on the state tax forms TurboTax generated. 9e is checked that someone is claiming him as a dependent, $0 on line 9a and $1500 on line 9e. It seems to me like he should have gotten the $1500 exemption and that they do owe him the $64 refund. No other explanation was provided in the notice. On his Federal Taxes he didn't owe or have a refund due and he didn't have any federal taxes withheld in case that is relevant.