Federal Law enforcement spousal pension for Michigan

[LRL1165]

I can find no information as to whether a FEDERAL law enforcement SPOUSAL pension for a postal inspector's ex wife is excluded from Michigan taxes.  I looked on the state of Michigan website and found nothing.  I am 65 years old. 

[DaveF1006]

To clarify, was the pension originally for the postal inspector and you now receive it as part of a divorce settlement?

[LRL1165]

Yes, I am the ex wife of a postal inspector and it was part of the divorce settlement.  Thanks

[RobertB4444]

Wisconsin doesn't tax government pensions.  So your spousal pension is still a government pension and is tax exempt in Wisconsin.

@LRL1165 

[LRL1165]

As previously indicated, I live in MICHIGAN, not Wisconsin.  I need the answer for Michigan taxes.

[RobertB4444]

I am so sorry @LRL1165 .  I don't know how I translated Michigan into Wisconsin.  My apologies.

Michigan does tax retirement income from all federal employees except fire, police and corrections employees.  However, Michigan also offers a deduction to be used against your retirement income to reduce the taxable amount.  So, while your pension is taxable, it is a much smaller portion that is taxed vs the federal amount.

@LRL1165 

[LRL1165]

Thanks for your answer.  A postal inspector is a federal law enforcement agent but I don't know if they are considered "police" by Michigan and I cannot find the answer on the SOS tax site (they do arrest people and testify in court as the arresting officer).  The way turbo tax asks about the pension, as I recall, is it asks if it is as a result of MY employment.  That is what confuses me.  It is as a result of an ex-spouses employment, NOT mine. I have hesitated trying to call the SOS for an answer as I'm sure it will be a long process to get an answer, IF I can even get an answer. 

[KrisD15]

No, a Postal Inspector would not qualify for the Michigan provision for law Enforcement Agents. 

According to the State of Michigan:

A special provision was implemented for certain fire, police, and corrections retirees. Beginning tax years on or after January 1, 2023 retirees may fully deduct, to the extent a qualifying distribution is included in AGI, retirement benefits received from Michigan service as a:

• public police or fire department employee, subject to compulsory arbitration of labor disputes under 1969 PA 312, (see especially MCL 423.232(1)(d) and (2)),
• state police trooper or state police sergeant, subject to compulsory arbitration of labor disputes under 1980 PA 17, or
• corrections officer employed by a county sheriff in a county jail, work camp, or other facility maintained by a county that houses adult prisoners.

[LRL1165]

Thank you very much for your research into the subject and for clarifying the issue for me.