MI tax starts with Federal AGI.  So the MI statement that it taxes all UI is correct in normal years. However, if $10,200 is subtracted from Federal AGI, it will not be taxed by MI, since MI has not set up any requirement to add it back  EXCEPT when calculating the MI credits, the full amount of unemployment must be included in "resources".  MI credits use all resources (income), taxable or not.  There is nothing on the MI site that addresses the adding the $10,200 UI exclusion back into taxable income, only for credits.  TaxSlayer Support has a great, state by state listing of how each state is treating the UI exclusion at  https://support.taxslayerpro.com/hc/en-us/articles/1500004451042-State-Conformity-to-the-2020-Federa....