TurboTax says $1500 Michigan exemption allowed, State of Michigan says no

[markjjordan]

I have a son that was born on 4/19/2008. He filed his MI-1040 that TurboTax did, with checking line 9e as a dependent on my taxes. We received a Notice of Adjustment from State of Michigan indicating that the $1500 is not allowed. When I read the MI-1040 instructions for line 9e, and see the note on the MI-1040 form itself, all seems to be correct, and the $1500 exemption seems allowable to me. Can someone shed some light on this, or has anyone else experienced this in Michigan? I'm using the TurboTax 2025 Deluxe Desktop version.

[MindyB]

The MI-1040 instructions explicitly allow a dependent to claim a $1,500 exemption, so the adjustment is likely just a computer error. 

Michigan law allows for this: you get the full child exemption on your taxes, and he gets the smaller $1,500 credit on his. 

To fix this, you should respond to the notice via the Michigan Treasury eServices portal, providing a copy of his return and yours to prove he is a qualifying dependent; they typically reverse these adjustments once a human reviews the manual entry.

[markjjordan]

Thanks for the response, Mindy. I did as you suggested and am waiting for a response.

[libs45]

This exact thing just happened to my teen born in 2009.  I'll be contacting them as well.  Seem incorrect that they put him at a $0 exemption