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RickinMI
New Member

Michigan Tax computing Incorrect

I was born in 1964 and my spouse in 1962. Each of us has income for IRAs and pensions in 2024 and my spouse had Social Security income.  Turbo Tax seems to show that all of this income is tax free for state. However, I think the recently revised law should have my spouses IRAs as 75% exempt and I THINK either 50% or 0% of mine exempt. I think it is not computing correctly? It did not work correctly for my mother last year either -- and she is 87. It took for 9 months to get her return for 2023  HELP!!!

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1 Reply
JamesG1
Expert Alumni

Michigan Tax computing Incorrect

I was able to enter two taxpayers, ages 62 and 64 into the Michigan Retirement and Pension Estimator.  TurboTax Desktop computed the deduction on Michigan form 4884.

 

The 2024 Retirement and Pension Estimator says

 

Your best option is a deduction on Form 4884 Section D in the amount of $10000. Complete Form 4884 and include with your tax return. 

 

In TurboTax Desktop, within the Michigan state income tax return, the screen Retirement Income and Pension Summary indicates qualifies for exclusion based on age.

 

 

Michigan form 4884 reports the Pension Benefits Subtraction.

 

 

What is the nature of the pension distributions that you are reporting?

 

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