Michigan offers a standard deduction for taxpayers who were age 67 on or before December 31st of the tax year. These taxpayers can receive a $20,000 deduction if filing as Single or Married Filing Separately ($40,000 filing as Married Filing Jointly). If you choose to take the deduction you are not allowed to deduct retirement or pension on their Michigan state return.
However you can claim itemized deductions on your state return, if they exceed the state standard deduction amount.
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, please go to:
- State Section
- Michigan Return
- Edit
- Subtractions from Income