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JP120
Returning Member

Why did my state tax bill not change in MI after the $10,000 unemployment credit was applied to my Federal?

I keep getting tax notices for the original amount due from Michigan, after the credit of the first $10k of taxes were applied to my Federal for unemployment. I'm getting collection notices from the state, but I've been waiting to pay it until they lower it accordingly.

2 Replies
KrenaS
Employee Tax Expert

Why did my state tax bill not change in MI after the $10,000 unemployment credit was applied to my Federal?

Per the Michigan Department of Treasury

The Department is requesting that all taxpayers who already filed an original 2020 Michigan tax return without reporting the unemployment exclusion (for example, if the original return was filed prior to the American Rescue Plan Act) now report the unemployment exclusion by filing an amended Michigan tax return. Though the Department is still exploring potential automated mechanisms regarding the unemployment exclusion, taxpayers are strongly encouraged to file an amended return to claim any refund that may be owed to them. Any information regarding an automated solution - if possible - will be communicated in future guidance from the Department, but there is no current timetable or certainty for this option.

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JP120
Returning Member

Why did my state tax bill not change in MI after the $10,000 unemployment credit was applied to my Federal?

Why is it showing I owe more in Federal Taxes when I attempt to amend my state taxes? The IRS already adjusted everything on my Federal.

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