qbteachmt

The information you're quoting both on the MI site and on Kiplinger's is for a "normal" year.  MI does indeed tax unemployment because it is included in Federal AGI, which is Michigan's starting point.  Then there are some subtractions and additions to MI income.  Nothing on the MI site addresses adding the $10,200 Federal exclusion back as an addition on MI Schedule 1.  But because MI taxes ALL resources, the excluded $10,200 UI must be added back when calculating MI credits.