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sgs112
Level 2

Michigan Individual Return: Schedule 1 numbers

I am attempting to understand the numbers that are automatically transferred to the Michigan return on Schedule 1.  

 

Schedule 1 line one is automatically adding income for interest and dividends that cannot be removed on any worksheet.  The number doesn't match anything in my Federal return.  Where does TurboTax get this number and why is it adding income that was already accounted for?

 

The same thing is also happening on line 12.  A subtraction is made for items previously reported.  The only subtraction should be a number for the US Treasuries that states don't tax.  

 

Can you help me understand how to fix this? 

4 Replies
KathrynG3
Expert Alumni

Michigan Individual Return: Schedule 1 numbers

It depends on your circumstances why these numbers are carrying to the Michigan return. If you think this is in error, I recommend deleting and re-adding the state after checking for updates.

 

To delete your state: 

TurboTax Online:

  • From the left menu, select State
  • Continue
  • Next to Michigan, click Delete and confirm the decision
  • Sign out of TurboTax
  • Close the browser window
  • Open an Incognito Chrome browser window
  • Sign in to TurboTax
  • help with Windows Updating Issues.

TurboTax CD/Download:

  • From the main menu, select File
  • Scroll down and click Remove a state
  • Select Michigan and confirm the deletion
  • To check for updates, depending on the program level, from the main menu, under Online or Help, select Check for Updates

 

2019 MI-1040 Instructions Schedule 1 beginning on page 13:

Line 1: Residents enter nonbusiness gross interest, dividends, and income from obligations or securities of states and their political subdivisions other than Michigan.

Residents and nonresidents report non-Michigan municipal business income from a partnership, S corporation, estate, or trust with Michigan business activity.

Business income subject to apportionment must be included on the Michigan Schedule of Apportionment (MI-1040H).

You may reduce this income by related expenses not allowed as a deduction by Section 265(a)(1) of the Internal Revenue Code (IRC).

Line 12: Enter the gains from the federal column of your MI‑1040D, line 12, and MI-4797, line 18b. See instructions for Schedule 1, line 3.

 

sgs112
Level 2

Michigan Individual Return: Schedule 1 numbers

I previously tried to delete the 2019 Michigan return and it did not help.  The 2018 version also adds income that was previously accounted for.  I ignored it last year because my number was small.  This year it makes a big difference so I need to understand if TurboTax is actually computing my returns correctly.

 

 In other areas of TurboTax, you can click the number that you don't understand and they give you an explanation where it came from.  This will not do that.  Can anyone help me understand how TurboTax is calculating the number it puts in line 1?  And why can't I alter it?

sgs112
Level 2

Michigan Individual Return: Schedule 1 numbers

Besides any TurboTax people that can explain where they get the numbers for the above listed lines, I'm also curious if there are any Michigan tax experts out there that can explain if Schedule 1 lines 1, 3, 10  and 12 are intended to repeat what was already included in the Federal return or just items previously not listed?

KathrynG3
Expert Alumni

Michigan Individual Return: Schedule 1 numbers

No, not necessarily are lines intended to repeat. Depending on your circumstances, you may have input on these lines.

 

On Schedule 1:

Additions:

Line 1: Gross interest and dividends from obligations issued by states other than Michigan

Line 3: Gains from Michigan column of MI-1040D and MI-4797

Subtractions:

Line 10: Income from U.S. Government bonds and other U.S. Obligations

Line 12: Gains from Michigan column of MI-1040D and MI-4797

 

Since you are still experiencing unexpected results, then it would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions:

 

For TurboTax Online:

  • From the left menu, click Tax Tools>
  • Tools>
  • Share my file with agent click send
  • There will be a pop-up with a token number

For TurboTax Desktop:

  • On your menu bar at the very top, click "Online">
  • Send Tax File to Agent click send
  • The pop-up will have a token number

I'll be able to open TurboTax with your numbers but not your personal information. That may help diagnose the issue. 

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