topic Re: pension in State tax filing

pension

Barb101 — Thu, 29 Feb 2024 14:37:22 GMT

Is a PBG Qualified Hourly pension plan taxable in Michigan?

Re: pension

TomK2023 — Thu, 29 Feb 2024 15:21:26 GMT

Maybe. "To determine your allowable retirement or pension subtraction, we must consider (1) if your retirement income is considered a qualified distribution and (2) what your tax treatment options are for a given tax year."

The year you were born is a determining factor.

Michigan Retirement and Pension Benefits

Re: pension

Barb101 — Thu, 29 Feb 2024 15:32:34 GMT

It is a qualified plan and I was born in 1957

Re: pension

AmyC — Tue, 05 Mar 2024 19:21:11 GMT

Using the age of the oldest person on the return as born in 1957, a portion would be taxable. You can enter the form and the program will do the work looking at ages and subtracting the pension. You need to be sure it is marked as a qualifying pension plan.

2023 MICHIGAN Pension Schedule (Form 4884) and Form 4884 Instructions state:

Recipients born after January 1, 1956 through December 31, 1958 may subtract qualifying retirement and pension benefits up to $15,380 if single or married filing separate, or $30,759 if married filing a joint return.