Michigan Standard Dedcution and Retirement Income Deduction

[peknaussdc]

I am doing my Michigan taxes.  My wife and I are 70 and retired and receive pension income.  According to the Michigan tax book, we can take a standard deduction of $40,000, which Turbo Tax is showing.  Turbo Tax  is also showing a pension deduction of $30,759 (which is the maximum for 2023 taxes).

According to the Michigan Tax booklet, we can take only the maximum of the standard deduction OR the pension deduction ... but Turbo Tax is taking both.

Is anyone else having this issue?  Am I missing something?  The way the Michigan tax booklet is worded I am concerned that the pension deduction is wrong and I will end up owing over $1,200 plus interest and penalties.

[janem1]

as i understand it - you get the normal deduction plus on form 4884 there is a 25% deduction on pension funds however turbo tax does not carry the calculation on to line 19 which will then flow to schedule 1 line 27  this will greatly impact your taxes owed.