Current Articles | RSS Feed RSS Feed

Michigan Individual Income Tax - Changes to the Pension Exclusion


Changes to Michigan’s individual income tax (starting in 2012) have received a lot of press -- especially the changes to the pension exclusion. Given all the questions surrounding the changes to the pension exclusion, I thought I would reiterate the changes to the law. Taxpayers will be classified into one of three categories (shown in bold below):

  • Taxpayers born before 1946 continue to have the same treatment of retirement and Social Security income as in prior law, and may claim the personal exemptions for which they are eligible.
  • Taxpayers born in 1946 through 1952 may take an exemption of $20,000 for a single return and $40,000 for a joint return against retirement income until age 67 when they may take that same exemption amount against all types of income.

    These taxpayers at any age may claim personal exemptions for which they are eligible and may exempt Social Security income.  However, the $20,000/$40,000 exemption is not available when total household resources exceed $75,000 for a single return or $150,000 for a joint return.

  • Taxpayers born after 1952 receive no exemption for retirement income until reaching age 67, except for the Social Security exemption.  Once the taxpayer reaches the age of 67,

    1. the taxpayer has a choice between the $20,000/40,000 exemption against all types of income, with no personal exemptions and with no additional exemption for Social Security
    2. continuing the exemption for Social Security, along with the personal exemptions for which they are eligible. 

    However, the $20,000/$40,000 exemption is not available where total household resources exceed $75,000 for a single return or $150,000 for a joint return.

The pension exclusion is dependent on one's age and determines which of the three categories the taxation of pension income fits. If a joint return is filed, the age of the eldest spouse controls which category all pension income fits and how the pension income is taxed.


This is really great. Keep it up the good going. Really very great blog this has given me all the information that i needed, good for visiting daily it will increase our knowledge. Best luck for future. 
calculadora de impuestos 
Posted @ Saturday, February 16, 2013 12:57 AM by Contabilízate
first visit, greetings introductions
Posted @ Monday, April 07, 2014 1:31 AM by obat kanker darah
A number of experts contain observed which will Diving can be fast-becoming the earth's most well liked sports. In spite of becoming vibrant or classic, many industry professionals have remarked best quality MBT shoes that people contain constantly popular the following game. They are really not primarily really remarkable however can be adventurous, way too. The diving diver entirely wants a wrist watch and MBT Sandals Shoes that is beneficial with your pet when he can be within that marine. best Replica IWC watches This specific timepieces prevent pressure water with the seashore. Several belonging to the ideas you ought cheap replica Rolex watches to ought to remain planned if you replica chanel bags end up buying an important ideal snorkeling view.
Posted @ Monday, March 23, 2015 1:46 AM by michaefugat
Post Comment
Website (optional)

Allowed tags: <a> link, <b> bold, <i> italics

Copyright © 2011 EHTC All rights reserved. The EHTC logo in full and individual icons are trademarks of EHTC.
All other logos are trademarks or registered trademarks of their respective owners.
EHTC P.C. Online Privacy Statement and Disclaimer | Site Map