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New Member
posted Mar 20, 2022 10:39:43 AM

Clarify the question "did you retire as of january 1, 2013".

can you give me more info on the ssa exempt question regarding being retired as of january 1, 2013?

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3 Replies
Level 15
Mar 20, 2022 11:12:23 AM

You may be seeing this question in relation to an available subtraction for pension income your Michigan state income tax return.  

If you were retired as of January 1, 2013, answer Yes.  If you retired later than that, answer No.

According to FAQ 4 under Subtractions in Withholding for Pension Recipients Frequently Asked Questions (FAQs):

 

Employment that is not covered by the federal Social Security Act (SSA) means the worker did not pay Social Security taxes and is not eligible for Social Security benefits based on that employment. Almost all employment is covered by the federal SSA. The most common instances of retirement and pension benefits from employment that is not covered by Social Security are police and firefighter retirees, some federal retirees covered under the Civil Service Retirement System and hired prior to 1984, and a small number of other state and local government retirees. Federal retirees hired since 1984 and those covered by the Federal Employees’ Retirement System are covered under the SSA.

 

A recipient who qualifies under both of the following conditions is entitled to increase the retirement or pension deduction or Michigan Standard Deduction up to $15,000 per eligible taxpayer.

  • Born between January 1, 1946 and January 1, 1958, or is born after December 31, 1952 and retired as of January 1, 2013 and 
  • Receives, or whose spouse receives, retirement or pension benefits from employment with a governmental agency that was not covered by the federal SSA.

Please see the link above for additional details.

If this answer doesn’t appear to be related to your question, please provide more information:

What section of TurboTax are you working in? 

Are you in the federal or state section of TurboTax?  If state, what state?

Are you entering a specific form? 

What section of TurboTax are you working in, and what is the screen title?

New Member
Mar 19, 2023 2:56:39 PM

My question is related to this as well....I retired from my job covered by the Municipal Employees Retirement System where we were exempt from Social Security in 2011 at age 56. I was not eligible for Social Security benefits until 2017.  Is the question related to when my employer retirement started or social security benefits?

Level 15
Mar 19, 2023 3:38:33 PM

It's related to when your retirement began.

In addition to the page linked above, see Michigan's How does my SSA Exempt status affect my retirement/pension benefits deduction or Tier 2 Michigan Standard Deduction? regarding how you would answer the SSA Exempt box on Schedule 1, lines 23C and/or 23G.