In 2015 Michigan didn't tax inherited pensions and IRA income but this year both of those are taxed. Did the State of Michigan change or is there a snafu in the program?

[trich11336]

Codes P & G for inherited pension and IRA's were not taxed by Michigan in 2015 but appear to be taxed for 2016.  Did Michigan change or is there a problem with the program+

[LindaA · Accepted solution]

Michigan has had some changes. New for 2016, taxpayers that qualify for the Michigan standard deduction are not eligible to deduct retirement and pension income. For more information, please see page 2 of 2016 Michigan Individual Income Tax Forms and Instructions.