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New Member
posted Jan 22, 2024 10:20:29 AM

State Taxes on Social Security

Hi.

I live in the state of Michigan which I understand does NOT tax social security benefits.  I am just beginning to enter my particulars into TurboTax and have only entered spousal W2 forms, which gave a running total of Federal and State taxes owed. Next I entered social security payments received, expecting to see the Federal tax running total increase, but thought that it would not affect the state. However, the state tax went up considerably. Why would this be if my state does not tax social security?

 

0 4 1498
4 Replies
Level 15
Jan 22, 2024 10:23:29 AM

Did you enter the SSA-1099 in the right spot?  Does it show up on federal 1040 line 6?

 

Enter a SSA-1099, SSA-1099-SM or RRB-1099 under

Federal Taxes

Wages and Income

Then scroll down to Retirement Plans and Social Security

Then the second line - Social Security (SSA-1099. RRB-1099) - click the Start or Revisit button

 

New Member
Jan 22, 2024 10:30:17 AM

Thanks.  Yes, that is exactly how it is entered.  It is as though the state is partially taxing that income though it is my understanding that they don't tax it.

Expert Alumni
Jan 22, 2024 11:02:34 AM

You are correct MI does not tax social security benefits.  You should see the the taxable social security benefits that are included in federal adjusted gross as a subtraction on your MI form 1040 line 13.   

 

In TurboTax online versions you can view your MI Tax summary using the steps below.  You should see a MI subtraction that includes the taxable amount of social security from line 6b on your form 1040.  You can see your federal form 1040 also using the steps below.

 

In desktop versions you can select the "Forms Mode" to view any forms.

 

In the left hand menu:

 

  1. Click "Tools"
  2. Click "Tax Tools"
  3. Click "View Tax Summary"
  4. Click "Preview my 1040"  for the Federal forms
  5. Click "MI Tax Summary" for a summary of your state returns  

New Member
Jan 22, 2024 11:22:04 AM

Thank you for that.  Yes...looking at the actual forms makes it clear that everything is entered and being calculated correctly.