If you worked for a particular employer, and you did not pay Social Security taxes on any of the income that you earned while you worked for that employer, you are considered to have had Social Security Act (SSA) exempt employment, and you are not eligible for Social Security benefits based on that employment.
The most common form of employment that does not earn Social Security benefits are:
- Firefighter retirees
- Police officer retirees
- Some federal retirees that are covered under the Civil Service Retirement System and began employment before 1984
- Specific state and local government employees
How do I know if I qualify for any of the larger deductions?
If you are a retiree, and the conditions listed below are applicable to you, you may be entitled to a larger retirement, pension, or Michigan standard deduction.
- If the taxpayer was born between January 1, 1946 and January 1, 1959 or was born after December 31, 1952 and retired as of January 1, 2013 and
- The taxpayer receives, or the spouse receives, pension or retirement benefits from work with a government agency not covered by federal SSA.
To determine if you are considered SSA Exempt, please answer the questions in the instructions and check the box 'Yes' if you are SSA Exempt and 'No' if you are not SSA Exempt. See the instructions here under Subtractions from Income.
In the program you will make this distinction under:
- Edit Michigan
- Subtractions from Income
- Deductions Based on Year of Birth
- You can then check Yes or No to the 'SSA Exempt?' question