Michigan retirement tax exemption for Law Enforcement

DRL

This is the first year I will be filing pension income from working as a State Trooper. In addition I also started receiving pension income for my National Guard service. My understanding, due to tax changes in the past 4 years or so, is that my State Trooper pension is federally taxed but exempt from State tax. My military pension is also taxed federally but is exempt from state tax. Does your software take into account these new tax changes?

Taylor

Hello DRL,

Yes, our software does account for Michigan's rules for public safety pension income as well as military pensions under the Michigan Retirement Tax Rollback. When you enter your 1099-R form reporting the pension income in the federal section, it will be included in your federal return and taxed accordingly.

When you proceed to the Michigan state section of the software, review the Subtractions from Income and Retirement Subtraction areas. The software will prompt you to identify the source of each pension, and based on your entries, it will apply the appropriate state exemptions.

If you have any questions while working through the state section, please reach out to our Customer Support Team inside your account with us.