Why is "Це мені смішно" not acceptable in this case? Is it just not something that is said or is it wrong?
"Мені смішно" is your state, something that you feel, you can't use "це" here. You can say "it's a funny [sth]" - "це смішний/а/е [щось]"
this is very confusing without using Це мені смішно how do we know we're not saying "I'm funny"
Це смішно мені was accepted... Is that correct?