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Returning Member
posted Mar 19, 2024 8:16:03 AM

Do i need to file Michigan taxes because of a scholarship for a summer program at the University of Michigan?

I  am a NC resident and attend college full time in NC. I am being claimed as a dependent on my parents taxes. I will be filing federal and NC state returns because I am due refunds from taxes withheld by my employer. I attended a 6 week summer program at the University of Michigan that was fully funded. I received a 1098T from Uof M The 1098T box 1 is $2701 and Box 5 is $3901. I am planning to claim the $1200 difference as taxable income to increase the AOTC that my parents are eligible to receive. My question is do I need to file a tax return in MIchigan. I have determined that I would be considered a non resident. If it matters, these are the numbers on my federal return: 
earned income $4395
interest and dividends $283
NC tax refund in 2022 is $23
taxable scholarship income $1200

I also have a 1098T from my university in NC, but I don't think that is relevant to this issue.
Thank you

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1 Replies
Expert Alumni
Mar 19, 2024 8:33:49 AM

Yes, you will file a non-resident State of Michigan return (and most likely a city return) for the scholarship income. 

The city return should be included with the state return, but you may need to select the city return if you file as a non-resident. The city selected would be the city you lived in while in Michigan.