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I had the same problem and cured by logging directly (without the tax program) to intuit and reset my password there.
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I normally efile nonresident Ohio and the program picks up other states taxes.
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MI is not applying any penalty for 2020 taxes.
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Yes, if you file MI electronically. You set it up on the MI information pages.
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In the MI info sheet part VII there is the box for the city for direct deposit and withdrawal.