Follow these steps:
Note: Be sure your federal is completely done before doing MI.
- Open to MI interview
- Look for the Income Allocation and verify MI income is correct
- Look at Sch NR, line 19 - this should be the correct percentage
- The program will use that percentage.
- In MI, you are asked if you want standard deduction or Pension/ Retirement subtraction. The standard deduction will default sometimes to the full amount of the deduction on Sch 1, line24 without prorating your Sch NR percentage.
- On the MI Retirement and Pension Benefits schedule - be sure you didn't accidentally elect to take a different retirement deduction to block the tier 3 standard deduction.
One more possible issue:
For tier 3, your standard deduction is reduced by any taxable Social Security or Military Retirement benefits you receive. You may have used up your deduction with those items.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
