Pension exemption in Michigan
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New Member

Pension exemption in Michigan

In 2018 I received a 55000. exemption on my state tax because I did not pay into Social Security while a police officer.    It was on Form #4884.    This exemption is not showing up on my 2019 state form tax.

3 Replies
Employee Tax Expert

Pension exemption in Michigan

Please see the following answer from a previously posted question.


On your MI state income tax return, verify your entries in the Retirement and Pension Benefits section.


Your selection for the Type of retirement and pension benefit is what allows the subtraction from Form 4884 to occur

  • If you choose Type N,other income subject to Michigan Tax was designated it will not calculate the subtraction 
  • If your pension is eligible to be subtracted from taxable income pursuant to the MI state income tax guidelines, you would need to choose the applicable type (M, R, G, P or C) next to Type in that screen

Here are the steps to verify and/or change your choice for the Type of Retirement and Pension Benefits in Michigan:

  1. Sign into your account and click Take me to my return
  2. Click on State (in left menu column) and select Continue
  3. Select Edit next to Michigan under Status of your state returns
  4. Select Edit next to your Retirement Income
  5. Select Revisit next to Retirement Income and Pension Deduction
  6. Select Edit next to the Retirement form under Retirement Income and Pension Summary.
  7. Verify and/or change your choice next to Type.

Related information: Where do I enter my 1099-R?


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New Member

Pension exemption in Michigan

still not showing up

Employee Tax Expert

Pension exemption in Michigan

Please see the State of Michigan Instructions starting on page 19 for Form 4884, Pension Schedule. There are several example scenarios for what pension income would be excluded

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