Michigan offers a standard deduction to taxpayers who were 67 on or before December 31st of the tax year. Such taxpayers can receive a $20,000 deduction if they file single or married filing separately ($40,000 filing a joint return). If they choose to take the deduction, however, they are not allowed to deduct pension or retirement on their Michigan return.
If you have entries in the federal itemized deductions section, any amount that applies to the state will be pulled to the state return. You may also make manual adjustments to the return.
To make manual entries on the Michigan Return:
- Go to State Section
- Subtractions From Income