How do I calculate my “Modified Taxable Income from Michigan?” Since I claimed a federal net operating loss deduction on my 2023 federal return due to a NOL Carryover from tax year 2022, Turbotax Home and Business (desktop version) is asking me to manually complete Michigan Form 1045 (Application for Michigan Net Operating Loss Refund) and then enter my “Modified Taxable Income from Michigan” into the software. I don’t see any term on the MI -1045 form itself (nor in the form’s instructions) that references “Modified Taxable Income.” Is the software asking me to enter my 2023 Michigan NOL which I calculated using the MI-1045 NOL form? Thank you.
Actually, Federal NOL is added back to Michigan income.
It is entered on Michigan Schedule 1, and carried to Form MI-1040.
Here's more info from Michigan.gov.
Thank you for the reply. Yes, I'm aware that the federal NOL is added back to Michigan income. My question is more geared toward the poor readability of the language TurboTax uses in a required question I need to answer before I can e-file my Mi state taxes. Besides the $XXX I added below, the question literally asks the following:
"Since you claimed a federal net operating loss deduction of $XXX you must complete Michigan Form 1045 (Application for Michigan Net Operating Loss Refund), manually, enter the following amount, and attach Form 1045 to your return.
Modified Taxable Income from Michigan (enter amount here)"
As background, I completed the MI-1045 correctly, came up with a positive answer to line 19 on that form, which is the Michigan NOL, which basically means that I don't have a Michigan NOL in tax year 2023... but I don't know what to enter when the screen asks me to input my "modified taxable income from Michigan." I'm guessing "Modified taxable income from MI" means I should input the answer I computed from using the MI-1045 in the first place - the amount of my Michigan NOL?
Thanks again.