Michigan Retirement

[rottwatcher]

I retired from State of Michigan employment in 2023. I was in the defined benefit plan and did not contribute to my qualified state pension. I was not  employed as a policeman or fireman.  I was born in 1953. Last year when I filed for 2023, I had a refund that was held up for months because TurboTax didn’t calculate the tax on my pension correctly. This year it’s showing I owe taxes for 2024. I have zero confidence in this calculation. I need to be certain the calculations are correct. Please help.

[RobertB4444]

Can you give some more information on what the calculation error was on last year's return?  If we know that then we can help with making sure that it isn't the same on this year's return.

@rottwatcher 

[rottwatcher1]

No tax adjustment was made on my Government pension. The State corrected the error and sent me a larger refund no explanation other than when I called them and was told that TT miscalculated it. This year, it doesn’t appear there was any adjustment at all on my 4884 when it should be more. See: https:www.michigan.gov/taxes/iit/retirement-and-pension-benefits

[rottwatcher1]

FYI

MCL - Section 206.30 - Michigan Legislature

[KrisD15]

Yes, I tested in the program to verify the retirement is handled correctly on the Michigan return.

Are you able to look at your Michigan Return Schedule 1?

If qualified, line 24 should have C and D checked.

You should also be getting an additional 15,000 added to the Michigan Standard Deduction to offset the pension. 

That is listed on Line 2 of Worksheet 2 on the Michigan Schedule 1.

There is also an screen to report this as a state retirement on the Michigan Section of the program. 

When Form 1099-R is entered in the Federal section, you may need to go to this adjustment screen for the state return.