topic Should my return, the Michigan Form is asking for a Date of Conversion on my Pension Deduction Worksheet. We are in Tier 1 which says no taxes. What date do I enter? in Retirement tax questions

Should my return, the Michigan Form is asking for a Date of Conversion on my Pension Deduction Worksheet. We are in Tier 1 which says no taxes. What date do I enter?

dale113 — Sun, 29 Mar 2020 17:59:31 GMT

Re: Should my return, the Michigan Form is asking for a Date of Conversion on my Pension Deductio...

KathrynG3 — Mon, 30 Mar 2020 22:16:29 GMT

Yes, you are allowed to claim a pension subtraction. There are still some income limits, however.

2019 Michigan MI-1040 Instructions page 17 state the following:

Tier 1 • Recipients born before 1946 may subtract all qualifying retirement and pension benefits received from federal or Michigan public sources, and may subtract qualifying private retirement and pension benefits up to $52,808 if single or married filing separate, or $105,615 if married filing a joint return.

If your public retirement benefits are greater than the maximum amount, you are not entitled to claim an additional subtraction for private pensions.

NOTE: In addition to the public retirement benefits listed above, the private pension limits are also reduced by the following from Schedule 1, line 11:
• Military retirement from the U.S. Armed Forces
• Retirement from the Michigan National Guard
• Railroad retirement.

@dale113

Re: Should my return, the Michigan Form is asking for a Date of Conversion on my Pension Deductio...

dfg57 — Sat, 20 Feb 2021 20:46:04 GMT

as I understand it , I can deduct my state of Michigan retirement recieved in 2020?

Re: Should my return, the Michigan Form is asking for a Date of Conversion on my Pension Deductio...

KathrynG3 — Sun, 21 Feb 2021 19:16:35 GMT

It depends on your age and type of retirement. By entering your details in TurboTax, if the retirement is taxable or partly taxable, the income will be sorted accordingly. It is based on your age as well as the type of retirement income.

For the taxability of retirement rules, see: 2020 MI-1040 Form 4884 instructions beginning on page 18:

@dfg57