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.
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