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mgw1124
New Member

Is part of Michigan Public School Employees Retirement System Pension Excludable from Mich. taxes

 
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IsabellaG
Employee Tax Expert

Is part of Michigan Public School Employees Retirement System Pension Excludable from Mich. taxes

For Michigan, when you were born determines how much if any of your pension you can exclude from Michigan taxes.

  • If you were born before 1946 you may subtract all qualifying pension and retirement benefits received from public sources (Michigan Public School retirement is a public source)
  • If you were born between January 1, 1946 through January 1, 1949 you are eligible for a deduction against all income. It's not specifically a pension exclusion. The amount is $20,000 for single and $40,000 for joint returns.
  • If you were born from January 1, 1949 through December 31, 1952  you may subtract the first $20,000 for single or married filing separately, or $40,000 for married filing jointly, of all private and public pension and annuity benefits. Benefits in excess of these limits are taxable to Michigan.
  • If you were born after 1952, all pension distributions are taxable, unless you meet an exception.

See this link for more information: http://www.michigan.gov/taxes/0,4676,7-238-43513-372300--,00.html

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