help with understanding "state tax exempt" income
There are two sources of income from 2024 that i am having trouble accounting for as i work on my 1040 and MI-1040 (Michigan Tax Return):
- Interest on "IAAA Series I Savings Bond" (bond was cashed in 2024)
- Dividends from VUSXX (Treasury Money Market Fund)
Is this income state tax exempt? Regarding VUSXX, looking at this resource, it lists 100% of ordinary dividends are from U.S. government obligations.
I have added the Bond and Money Market income to my gross income on my 1040 and worked through my expected tax payments.
MI-1040, Line 10 asks for "Adjusted Gross Income" from the 1040, which includes the Bond and Money Market income.
How do i account for the state tax exempt income correctly?
I can't seem to find a specific line on the MI-1040 to subtract income from Bond and Money Market so that it is not state taxed. Am i supposed to manually make the calculation and enter it on line 10 of the MI-1040, even though this number is not my "adjusted gross income from Form 1040"?
Thank you for any guidance with this