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Category: Michigan

Michigan Military Filing

Being in the military and having Michigan has your "Home State of Record", provides special tax benefits explained below.

Filing Extension: United States Military personnel serving in a combat zone on April 15, 2014, will be given 180 days after leaving the combat zone to file their Federal and Michigan state tax returns and will be exempt from any penalties and interest during that period. To receive this automatic extension within your TaxSlayer account, within your Personal Information section, just check the box that you served in a Combat Zone and follow the prompts.

Qualified Disabled Veterans*: A Michigan taxpayer may claim an exemption of $300 in addition to their other exemptions if:

  • the taxpayer or spouse is a qualified disabled veteran, OR
  • a dependent of the taxpayer is a qualified disabled veteran.

Within the TaxSlayer Michigan state program, simply enter the number of qualified disabled veterans listed on the return within the Basic Information section.

*To be eligible for the additional exemption an individual must be a veteran of the active military, naval, marine, coast guard, or air service who received an honorable discharge or general discharge and has a disability incurred or aggravated in the line of duty. This additional exemption may not be claimed on more than one tax return.

Subtractions from Income

  • Military Retirement Benefits - Michigan will allow its taxpayers to subtract from their Michigan income any military and Michigan National Guard retirement benefits.
  • Active Duty Military Pay - Michigan also allows its current active duty military residents to subtract their military compensation received for active duty in the U.S. Armed Forces.
    • Compensation from the U.S. Public Health Service, contracted employee pay, civilian pay, and DITY pay are not considered military pay.

Within the TaxSlayer Michigan state program, enter the applicable military subtractions within the appropriate Subtraction from Income section of the Michigan return.

For additional information regarding military pay, please click here.


Military Spouses Relief Act

The Military Spouses Relief Act was signed into law on November 11, 2009, effective for tax years beginning on or after January 1, 2009. It may affect the state income tax filing requirements for a spouse of an individual in the military.

Under the Act, the spouse of an individual in the military is a non-resident of a state and consequently not subject to that state's taxation if:

  • The service member is present in that state due to military orders
  • The spouse is in that state solely to accompany the service member
  • The spouse maintains a domicile in another state

Therefore, a military spouse who is a Michigan resident and plans to return to Michigan as his/her permanent home should include income earned in the other state on his/her Michigan Income Tax return. A Michigan military spouse may not claim a credit for the income taxes paid to another state. The military spouse must file a non-resident return with the other state to obtain a refund of taxes paid to that state.

For additional information about the MSRA, please click here.