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I find that the Michigan IRA 65+ deduction Phase-in Schedule is set wrong for the 2025 Tax Year. Should be set to born between 1946-1966; but it is between 1946-1958.

for Michigan residents born between 1946 and 1966, you can deduct 75% of your IRA Distributions from you Michigan taxable income. I am finding the TurboTax system is set between 1946-1958 which were the 2023 filing limits.
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2 Replies
RogerD1
Expert Alumni

I find that the Michigan IRA 65+ deduction Phase-in Schedule is set wrong for the 2025 Tax Year. Should be set to born between 1946-1966; but it is between 1946-1958.

You are correct that Michigan expanded the Retirement and Pension Benefits subtraction to those born before 1967.  The provision allows a deduction of retirement income from public and private retirement and pension benefits up to a max of $49,423 for single filing status and $98,846 for married filing jointly in 2025.  More information about this subtraction is at 2025 Retirement and Pension Information.

 

I created a fictional return for an individual born in 1966, and the deduction did calculate for the Michigan tax return.

 

After entering the 1099-R for your retirement income, a screen will show up asking "Where is your distribution from?"  The answer to that question will affect whether or not the Michigan subtraction amount will appear.  The link given earlier will have information about the types of retirement income that will qualify for the subtraction.

 

After rechecking your entries, please feel free to contact us again for further assistance.  You may want to consider contacting us by phone by following the information here.

 

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I find that the Michigan IRA 65+ deduction Phase-in Schedule is set wrong for the 2025 Tax Year. Should be set to born between 1946-1966; but it is between 1946-1958.

Thank you Roger for checking this out for me. 
issue solved when I changed the classification of the IRA distribution.  I appreciate you and your response.  It was very helpful. 

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