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Category: Michigan

Michigan Form 4884 (Michigan Pension Schedule)

Michigan offers qualifying taxpayers a subtraction from their state income for "Retirement Benefits that are Exempt from Michigan Income Tax". Refer to the following to help you determine if you qualify for this subtraction:

 

Recipients born before 1946 may subtract all qualifying pension and retirement benefits received from public sources, and may subtract qualifying private pension and retirement benefits up to $49,861 if single or married filing separate, or $99,723 if married filing a joint return. If your public retirement benefits are greater than the maximum amount you are not entitled to claim an additional subtraction for private pensions.

 

Recipients born during the period January 1, 1946 through January 1, 1950, do not complete Form 4884. See Schedule 1, line 24.

 

Recipients born after January 1, 1950 through December 31, 1952 will be able to deduct up to $20,000 in qualifying pension and retirement benefits if single or married filing separate, or up to $40,000 if married filing a joint return. Generally, all pension or retirement benefits (public and private) are treated the same unless the recipient also has significant benefits from service in the U.S. Armed Forces or Michigan National Guard, or receives taxable railroad retirement benefits. Recipients who deduct military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard, or taxable railroad retirement benefits on Schedule 1, line 11 may have lower deduction limits if these deductions total more than $29,861 on a single return or $59,723 on a joint return. See the instructions for line 16 or 27 of Form 4884, whichever applies, for more information.

 

Recipients born on or after January 1, 1953 but before January 2, 1955 who have reached age 62 and receive retirement benefits from employment exempt from Social Security may deduct up to $15,000 in qualifying retirement and pension benefits. If both spouses on a joint return receive Social Security exempt retirement benefits, the maximum deduction increases to $30,000. See Form 4884, line 28 instructions for more information.

 

 

All other Recipients born after 1952, all pension and retirement benefits are taxable and you are not entitled to a pension subtraction.

 

For additional information, please refer to the MI-1040 Instructions and Form 4884 and the chart for Michigan Retirement Benefits.

 

Also refer to following Knowledge Base article by clicking here.

 

To locate this section within your TaxSlayer account, select State Section from the black navigation bar followed by Enter Myself >> Subtractions from Income.