I have a pension from another state that seems to qualify in every respect for the 2024 deduction on form 4884 in Michigan except that it is from the State of Minnesota. Public pension, pays monthly, from the Minnesota state retirement system, job was social security eligible, etc. I get a 1099-R. I cannot figure out (1) whether I can legally take the deduction for it this year, and (2) how to answer the question for "where is this distribution from" in the TurboTax questions. If I just follow the TT high level instructions, seems like I should just call it a public pension and take the deduction (if I select the public option, it does go on the MI form 4884 and I get the deduction in TT). But I'm not at all sure that's right.
The State of MI and the 4884 instructions are less than helpful. The instructions have a specific list of what's public, and public pensions from other states aren't on it. They also say "public benefits from other states that offer a similar or reciprocal subtraction for Michigan benefits" can be considered "private", which also get the deduction. But I don't think Minnesota does offer a similar or reciprocal subtraction. Maybe I just need to select "none of the above" in TT and forego the tax reduction.
Anyone else struggling with this or have any info that might illuminate how to handle this? Thanks!
