I received a letter of adjustment from the Michigan Department of Treasury related to my 2022 return. It references that the adjustment in their favor was related to the Michigan Homestead Property Tax Credit or Michigan Home Heating credit (credits I did not claim). But then the letter goes on to state:
"Your claimed subtraction for the Michigan Educational Savings Program was adjusted to agree with the amount included in your AGI on your federal return. A misc subtraction related to the MESP includes any portion of a qualified withdrawal from a MESP that is included in federal AGI. Any amounts not included in AGI or that are already deducted on the federal return to arrive at the AGI, do not qualify for this subtraction."
I have no idea why I received this letter. I've deducted contributions to my kids' MESP accounts for years on my Michigan state return, and started taking withdrawals from one of the accounts back in 2021 when my daughter started college, and have not experienced this issue before. Any guidance would be greatly appreciated.
