I have been getting this income for over 10 years and have been able to e-file my Michigan taxes. Why has it changed for 2023. It's ridiculous. Because I got a whole $194 in gas royalties I now have to mail my Michigan return. Is this going to be updated this year so I can e-file?
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Tax laws change, tax forms change as do preparation fees and procedures.
You are correct MI now requires this new MI form 5889 to support the addition of costs for MI royalties as well as the subtraction of income from the MI royalties on the MI Schedule 1. The MI form 5889 is not supported in TurboTax.
In the past the information was taken from the federal forms (Schedule E or C as applicable) directly to the MI Schedule 1 and those federal schedules were part of the MI e-file to support the amounts.
For tax year 2023 to claim the MI Gas, oil extraction deduction on your MI state taxes, you will need to print/mail your MI state return. However, you can choose not to claim the deduction and e-file your return.
In the MI state interview "Edit" the income section, "Start/Revisit" the "Michigan Gas, oil...extraction" topic and select "No" when asked if, "you claimed MI gas, oil...extraction income or expenses on your federal return?"
Is MI form 5889 not included at all in TurboTax? When I printed my return to mail it, (because I can't e-file) that form is not included in the printout. I went to the Michigan Tax site and found it there. It was a fillable PDF that I was then able to print.
Thanks
It would be helpful to know if Turbo Tax plans to add Form 5889 for Michigan returns before the deadline for filing.
Form MI 5889 is an unsupported form in TurboTax. You will need to print, attach the form, and mail your state tax return. See Form MI 5889 to complete.
I understand that. My question was whether there are plans to add the form to the software.
And remember turbo tax doesn’t supply you with the form to mail either. I had to print it from michigan.gov to mail. Won't be using them again now. No trust that I couldn't simply mail what they gave me in the pdf.
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