The federal modified taxable income was flagged as an error on my state taxes. Upon review, the corresponding field is empty. What is supposed to be entered here?

Forum|Forum|6 years ago
April 11, 2020
4 replies
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DavidS127

Level 13

It depends on the question being asked on your state tax return. More information may help resolve your issue. For example, what state tax return are your preparing, and what is the specific question or section of the state tax return?

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beckypostmaAuthor

Level 2

The aforementioned question refers to the "Total Household Resources Worksheet" for Michigan state taxes. Specifically, section 16, box j, subsection 2. Neither myself or my husband are self-employed, therefore, I'm uncertain how a net operating loss deduction applies to us.

KathrynG3

Level 14

It depends on the rest of the entries why this information is populating.

You can see an explanation in TurboTax CD/Download by right-clicking in the cell. At the bottom of the pop-up window, is an "About" option. The details below are from this source.

Section 16 Box j, subsection 2 guidance states:

Enter the amount of federal modified taxable income from your manually prepared Form MI-1045, Application for Michigan Net Operating Loss Refund, Part 3 and be sure to attach Form MI-1045, Application for Michigan Net Operating Loss Refund to your return.

Subsection 1 guidance states:

This amount transfers from the federal return (as a positive amount). If you have a net operating loss deduction, you must manually complete Form MI-1045, Application for Michigan Net Operating Loss Refund and figure the federal modified taxable income (FMTI). Enter the FMTI amount on line 16j(2).

If this section truly does not apply to you, I recommend running through the Federal and Michigan interviews, particularly if details were imported, to verify there are no extraneous entries. There could be an unnecessary -0- that was pulled in that should be deleted. If the cell does not apply, it should be blank.

@beckypostma