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Brittas2
Returning Member

Mich tax

According to mich.gov if you are born before 1946 why does the tube tax still show I need to pay taxes?

Taxable income $61474

 

ref

  1. What are the changes for recipients born before 1946?

    There are no changes for those born before 1946.

    For recipients born before 1946, all benefits from public sources are exempt and benefits from private sources may be deducted up to $53,519 for a single or married filer filing separately or $107,517 for married filing a joint return for the 2020 tax year. Any private pension payment in excess of the limits above is taxable.

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3 Replies
ErnieS0
Expert Alumni

Mich tax

In answering your question @Brittas2, I'm assuming your only income is a public pension and TurboTax is showing you owe tax.

 

If that is the case, check how the pension is being listed in TurboTax.

  • in Michigan, go to the Retirement Income and Pension Summary
  • Click Edit next to your Pension
  • On the screen Retirement and Pension Benefits, the Type should be "G-Oovernment or Public". If it is showing as "N-Other pension subject to Michigan tax" TurboTax will make it taxable.

As you said, recipients born before 1946 may subtract all qualifying retirement and pension benefits received from public sources, and may subtract private retirement and pension benefits up to $54,404 if single or married filing separately or up to $108,808 if married filing jointly.

 

2021 Retirement & Pension Information

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Brittas2
Returning Member

Mich tax

I did all the things suggested but.

Why would it still show tax owing from a private income that is less than the limit

 

As you said, recipients born before 1946 may subtract all qualifying retirement and pension benefits received from public sources, and may subtract private retirement and pension benefits up to $54,404 if single or married filing separately or up to $108,808 if married filing jointly.

 

Is this an error in the calculation on Turbo Tax

Brittas2
Returning Member

Mich tax

MY error

I clicked the box

Pension withdrawal before retirement.

corrected the error

clicked the box 

withdrawal after retirement

 

thanks

 

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