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Level 2
March 17, 2026
Question

TurboTax says $1500 Michigan exemption allowed, State of Michigan says no

  • March 17, 2026
  • 3 replies
  • 118 views

I have a son that was born on 4/19/2008. He filed his MI-1040 that TurboTax did, with checking line 9e as a dependent on my taxes. We received a Notice of Adjustment from State of Michigan indicating that the $1500 is not allowed. When I read the MI-1040 instructions for line 9e, and see the note on the MI-1040 form itself, all seems to be correct, and the $1500 exemption seems allowable to me. Can someone shed some light on this, or has anyone else experienced this in Michigan? I'm using the TurboTax 2025 Deluxe Desktop version.

    3 replies

    Level 13
    March 18, 2026

    The MI-1040 instructions explicitly allow a dependent to claim a $1,500 exemption, so the adjustment is likely just a computer error. 

     

    Michigan law allows for this: you get the full child exemption on your taxes, and he gets the smaller $1,500 credit on his. 

     

    To fix this, you should respond to the notice via the Michigan Treasury eServices portal, providing a copy of his return and yours to prove he is a qualifying dependent; they typically reverse these adjustments once a human reviews the manual entry.

    Level 2
    March 30, 2026

    Thanks for the response, Mindy. I did as you suggested and am waiting for a response.

    Level 2
    April 18, 2026

    This exact thing just happened to my teen born in 2009.  I'll be contacting them as well.  Seem incorrect that they put him at a $0 exemption

    Level 2
    April 21, 2026

    FYI... my son nor I have received any response from the state. Still waiting.

    CatinaT1
    Level 15
    April 21, 2026

    You could call the Dept of Revenue and inquire.

     

    How do I contact my state Department of Revenue?

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