The state has announced that the federal tax exemption of unemployment benefits will flow-through to Michigan returns.
The Michigan Department of Treasury’s Taxpayer Advocate provided the following update:
There is no state-level deduction for the unemployment compensation relief provided by the American Rescue Plan Act of 2021. The federal exclusion of certain unemployment compensation will result in a lower federal AGI, which will flow-through to the Michigan return resulting in a lower “taxable income.”
The state is asking taxpayers who have already filed to wait on filing any amended Michigan returns.
We will notify you as soon as we receive further guidance.