MI Pension Retirement Subtraction

Legacy tier system overview

Public Act 38 of 2011 ("Snyder pension tax") replaced Michigan's pre-2012 unlimited public-pension subtraction with a three-tiered system that conditions the subtraction on the older of taxpayer or spouse's year of birth (the "key person" for joint filers). The tier boundaries are codified at MCL 206.30(1)(f), (9), and (10) and have not moved with PA 4 of 2023 — what PA 4 of 2023 changed is what each tier may claim, not the birth-year boundaries.MCL 206.30(1)(f), (9), (10)

Three tiers table

| Tier | Birth year of older spouse | Legacy (pre-PA 4) rule | |---|---|---| | Tier 1 | Born **before** 1946 | Full subtraction of all public retirement benefits; private retirement benefits subtracted up to the inflation-indexed cap (the "Tier 1 cap"). | | Tier 2 | Born **1 Jan 1946 – 31 Dec 1952** | At age 67: choose **either** the standard $20,000/$40,000 all-income deduction **or** Section B retirement subtraction under the Tier 2 caps. | | Tier 3 | Born **1 Jan 1953 or later** | Under the legacy rule, no retirement subtraction except Social Security; at age 67, the $20,000/$40,000 all-income standard deduction (Tier 3 Michigan Standard Deduction). |

Phase-in table

| Tax year | Phase-in % | Eligible birth cohort (in addition to pre-1946) | Indexed Tier 1 base cap (single / MFJ) | Phased cap = base × % (single / MFJ) | |---|---|---|---|---| | 2023 | 25% | 1946 – 1958 | $56,961 / $113,922 | $14,240 / $28,481 | | 2024 | 50% | 1946 – 1962 | $64,040 / $128,080 | $32,020 / $64,040 | | 2025 | 75% | 1946 – 1966 | $65,897 / $131,794 | $49,423 / $98,846 | | 2026 | 100% | All retirees (1946+) | $67,610 / $135,220 | $67,610 / $135,220 |2025 Form 4884 instructions, Worksheet 3.3 line 1 ($65,897 / $131,794) and line 4; RAB 2026-1

Standard deduction overview

Independent of the pension subtraction, MCL 206.30(9)(a) provides a Michigan Standard Deduction against all income (not just retirement income) for the older spouse who has reached age 67. PA 4 of 2023 did not alter the dollar value of this deduction.MCL 206.30(9)(a)

Standard deduction table

| Filing status | Michigan Standard Deduction (all-income) — 2025 & 2026 | |---|---| | Single / MFS (age 67+) | $20,000 | | MFJ (older spouse age 67+) | $40,000 | | Additional add-on if **either** spouse received SSA-exempt retirement (Schedule 1 box 24C) | + $15,000 | | Additional add-on if **both** spouses received SSA-exempt retirement (boxes 24C **and** 24G) | + $30,000 |2025 Form 4884 instructions, Worksheet 2; MCL 206.30(9)(a)

PA 24 of 2025 Tier 3 SS offset relief

For TY 2026 through TY 2028, Public Act 24 of 2025 removes the requirement that Tier 3 taxpayers reduce their $20,000/$40,000 Michigan Standard Deduction by the amount of Social Security benefits separately deducted on Schedule 1, line 14. This is a Tier-3-only fix; the offset remains in place for Tier 2.Public Act 24 of 2025

Always-exempt categories

Regardless of tier, regardless of phase-in year, the following are fully subtracted from Michigan AGI on Schedule 1, line 11 (not on Form 4884) and are fully exempt from Michigan income tax: Social Security benefits (taxable portion included in federal AGI); Railroad retirement benefits (Tier 1 and Tier 2 RRTA benefits); Retirement income from service in the U.S. Armed Forces; Retirement income from the Michigan National Guard. However — and this is the trap — when those amounts are also reported on Schedule 1, line 11, they reduce the cap available on Form 4884 for private retirement benefits (see Worksheets 3.1, 3.2, 3.3 line 2 / line 10). The exempt amount is "used up" against the same cap that private pension income would consume.Schedule 1 line 11; Worksheets 3.1, 3.2, 3.3

What was repealed and what wasn't

PA 4 of 2023 is universally described as "repealing the Snyder pension tax," but legally it did not repeal MCL 206.30(9)–(10) — those subsections (the three-tier framework) remain in the statute. What PA 4 did was add MCL 206.30(1)(f)(ii) — a new alternative subtraction that, when fully phased in, mirrors the pre-2012 Tier 1 cap for every retiree born in or after 1946. A Tier 2 or Tier 3 taxpayer who would benefit from the old rules can still elect them; in practice, the new phased subtraction is more generous for nearly all retirees with material pension income.MCL 206.30(1)(f)(ii); MCL 206.30(9)-(10)

Tax year 2023

Phase-in opens at 25% of the 2023 Tier 1 indexed cap ($14,240 single / $28,481 MFJ). Eligible cohort = born 1946 through 1958. Tier 3 taxpayers born after 1958 receive nothing under the new subtraction in 2023 and remain on the legacy regime (no retirement subtraction unless age 67 reached, in which case the $20,000/$40,000 Michigan Standard Deduction applies).PA 4 of 2023

Tax year 2024

Phase-in advances to 50% ($32,020 single / $64,040 MFJ). Eligible cohort expands to 1946 through 1962.PA 4 of 2023

Tax year 2025

Phase-in advances to 75% ($49,423 single / $98,846 MFJ — Form 4884 Worksheet 3.3 line 4). Eligible cohort expands to 1946 through 1966. This is the figure on the 2025 Form 4884.Form 4884 Worksheet 3.3 line 4

Tax year 2026

Phase-in reaches 100% — the full Tier 1 cap of $67,610 single / $135,220 MFJ is available to every retiree born in or after 1946, regardless of cohort. The phase-in is complete. From 2026 onward, the only meaningful birth-year distinction remaining is the unlimited public-pension subtraction reserved to Tier 1 (born before 1946) — and even that is functionally moot, because by TY 2026 the youngest Tier 1 taxpayer is 81 years old and the cohort is shrinking.RAB 2026-1

Tier 1 deterministic rules table

| Rule ID | Rule | Source | |---|---|---| | MI-PEN-T1-01 | Begin with federal AGI from federal Form 1040, line 11. Form 4884 reports a **subtraction** that flows to Schedule 1 (MI-1040) line 27. | MCL 206.30(1)(f) | | MI-PEN-T1-02 | "Key person" for joint filers = older of taxpayer or spouse. The tier is determined by the key person's year of birth (instructions, Q3 of "Which Section Should I Complete"). | 4884 Instr. p. 22 | | MI-PEN-T1-03 | Social Security, railroad retirement, U.S. Armed Forces retirement, and Michigan National Guard retirement are **always fully subtracted** on Schedule 1 line 11, regardless of tier. Do **not** include them on Form 4884 line 8. | 4884 Instr. p. 20 | | MI-PEN-T1-04 | The Form 4884 cap (Worksheet 3.1/3.2/3.3 line 1) is **$65,897 single / $131,794 MFJ** for tax year 2025. For TY 2026 the indexed cap is $67,610 / $135,220 (per RAB 2026-1). | 4884 Worksheet 3.1–3.3 | | MI-PEN-T1-05 | The cap on Form 4884 line 1 of each worksheet must be reduced by military / National Guard / railroad retirement subtractions claimed on Schedule 1 line 11. This is **Worksheet 3.1 line 2**, **Worksheet 3.2 line 2**, **Worksheet 3.3 line 2**. | 4884 Worksheet 3.1–3.3 | | MI-PEN-T1-06 | **Tier 1 (born before 1946):** complete **Section A** of Form 4884. Subtract **all** public Michigan and federal retirement benefits, plus private benefits up to the cap remaining after public benefits are absorbed (Worksheet 3.1 logic: cap minus public benefits, then take the smaller of remainder or private benefits). | MCL 206.30(1)(f)(i); 4884 Instr. p. 19 | | MI-PEN-T1-07 | **Tier 2 (born 1946 – 1952):** Choose **most beneficial of** (i) Section B Form 4884 pension subtraction (Worksheet 3.1), (ii) Section D phased subtraction (Worksheet 3.3, 75% in 2025), or (iii) Worksheet 2 all-income $20,000/$40,000 Michigan Standard Deduction if age 67+. | MCL 206.30(9); 4884 Instr. p. 22 questionnaire | | MI-PEN-T1-08 | **Tier 3 (born 1953 – 1958):** Choose **most beneficial of** (i) Section D phased subtraction (Worksheet 3.3, 75% in 2025), or (ii) Worksheet 2 $20,000/$40,000 standard deduction if age 67+. There is **no Tier 3 Section B legacy retirement subtraction** unless the taxpayer is in SSA-exempt employment. | MCL 206.30(1)(f); 4884 Instr. p. 21 | | MI-PEN-T1-09 | **Tier 3 (born 1959 – 1966):** Same as MI-PEN-T1-08 — use Worksheet 3.3 (Section D) for 2025. The cohort expansion is what newly admits 1963–1966 birth years to the phased subtraction in TY 2025. | 4884 Instr. p. 20 | | MI-PEN-T1-10 | **Born after 1966 (TY 2025):** Generally **no retirement subtraction** is available except the Social Security / military / railroad exemption on Schedule 1 line 11. In TY 2026 this cohort becomes fully eligible for the 100% phased subtraction. | 4884 Instr. p. 21 | | MI-PEN-T1-11 | **SSA-exempt employment recipients born 1 Jan 1959 – 1 Jan 1964 who have reached age 62:** May subtract up to $15,000 / $30,000 (MFJ both qualifying) via **Section C, Worksheet 3.2**. | 4884 Instr. p. 20–21; line 18 | | MI-PEN-T1-12 | **SSA-exempt retirees born after 1 Jan 1959 retired as of 1 Jan 2013:** May subtract up to $35,000 single / $55,000 MFJ / $70,000 MFJ both qualifying via **Section B, Worksheet 3.1**. | 4884 Instr. p. 20; line 17 | | MI-PEN-T1-13 | **Qualified Fire, Police, and County Corrections retiree** (and surviving spouse of one): may elect **unlimited** subtraction of all public retirement benefits from qualified service, plus private retirement subtraction up to cap — Section A regardless of birth year. Check Form 4884 line 6a. | MCL 206.30(11); 4884 Instr. p. 19 | | MI-PEN-T1-14 | Roth IRA distributions are **not** included in federal AGI; therefore there is nothing to subtract and they do **not** appear on Form 4884 line 8. | 4884 Instr. p. 19 — only AGI-included benefits | | MI-PEN-T1-15 | 401(k) / 403(b) distributions attributable to **unmatched** employee contributions, 457 plans, and Thrift Savings Plan distributions are **excluded** from qualifying retirement benefits. Do not list on Form 4884 line 8. | 4884 Instr. p. 19 | | MI-PEN-T1-16 | Rollovers preserve the character of the original plan. A rollover from a qualifying public pension into an IRA is still "public" for purposes of Section A. | 4884 Instr. p. 19 | | MI-PEN-T1-17 | Distributions taken **before the plan's stated retirement age** (e.g., separation-from-service distributions taken before age 55/59½ unless they qualify as Section 72(t)(2)(A)(iv) substantially-equal-periodic-payment) are **not** qualifying retirement benefits. Do not list on Form 4884 line 8. | 4884 Instr. p. 19 | | MI-PEN-T1-18 | Surviving spouse rules: the survivor may use the **older of decedent's or surviving spouse's** year of birth to determine tier, **provided** the survivor (a) claimed a retirement or Social Security subtraction on the joint return filed in the year the spouse died and (b) has not remarried. Otherwise the survivor's own birth year governs. | 4884 Instr. p. 20 | | MI-PEN-T1-19 | The Section A/B/C/D subtraction flows to **Schedule 1 (MI-1040) line 27**, **not** line 25 (additions) or line 11 (other subtractions). Schedule 1 line 11 is where Social Security / military / railroad are subtracted. | 4884 Instr. p. 21 (each section); Schedule 1 | | MI-PEN-T1-20 | The 4.25% Michigan flat rate (MCL 206.51) applies after the subtraction is netted from federal AGI. There is no graduated effect, but the subtraction directly lowers Michigan taxable income dollar-for-dollar. | MCL 206.51 |

Tier 2 judgment rules table

| Rule ID | Situation | Judgment required | |---|---|---| | MI-PEN-T2-01 | **Choose the most beneficial subtraction.** Form 4884 page 22 questionnaire instructs taxpayers in many cohorts to "complete Worksheet 2 and Worksheet 3.3 and claim the most beneficial subtraction." This is **not deterministic** — it requires computing both and comparing the resulting Michigan taxable income. | Compute both branches and apply the larger subtraction. Note that the "most beneficial" may be either (i) the phased pension subtraction or (ii) the all-income standard deduction depending on the mix of pension vs. non-pension income. **Flag for verifier confirmation**. | | MI-PEN-T2-02 | **Tier 3 election: PA 4 phased subtraction vs. all-income standard deduction.** A 1955-born retiree age 70 in TY 2025 with $30,000 of pension and $25,000 of Schedule C income should consider that the $20,000 standard deduction reduces **all income** including the Schedule C, whereas the $49,423 Section D phased subtraction reduces **only pension income** (capped at the actual $30,000 of pension). The Section D path may still win because $30,000 > $20,000, but the analysis is fact-pattern-driven. | Compute both. Where pension < $20k single / $40k MFJ, the all-income deduction may win. Where pension > cap, Section D usually wins. **Flag for verifier confirmation**. | | MI-PEN-T2-03 | **Pre-Snyder grandfathered pensions for Tier 3 taxpayers.** A 1955-born taxpayer who was already retired from a **qualifying public source** as of 1 January 2013 may, under certain conditions, retain the pre-Snyder treatment. The 2025 Form 4884 instructions handle this through the **SSA-exempt-employment-retired-as-of-1-Jan-2013** carve-out on line 17 (Section B, Worksheet 3.1) — but this is only for SSA-exempt employment (state/local government employees not covered by Social Security). | The grandfather rule does **not** restore pre-Snyder treatment for taxpayers covered by Social Security. **Confirm the taxpayer's SSA-exempt status with their employer or pension administrator** (typically state and local government employers in Michigan that opted out of Social Security). | | MI-PEN-T2-04 | **Surviving spouse using decedent's year of birth.** If the decedent was Tier 1 (born before 1946) and the survivor is Tier 3 (born after 1952), the survivor can use Tier 1 treatment **only if** (a) the survivor claimed a retirement subtraction on the final joint return in the year of death and (b) has not remarried. Documentation of the prior return is mandatory. | Review the prior-year MI-1040 jointly filed with the decedent. If the decedent died in a year prior to the introduction of PA 4 of 2023, verify the subtraction was actually claimed. **Hold for verifier review**. | | MI-PEN-T2-05 | **Rollover treatment.** A rollover from a qualified public pension into an IRA is still "public" for Form 4884 purposes (rule MI-PEN-T1-16), but if the IRA is subsequently rolled into a 401(k), the character may be murky — particularly if the new 401(k) is at a non-Michigan employer. | If the chain of rollovers is non-trivial, **flag for verifier review** and obtain the original 1099-R distribution codes and the plan documents establishing the public-source origin. | | MI-PEN-T2-06 | **Part-year residency.** Form 4884 line 8F instructs part-year residents to use only the Michigan-source portion from Schedule NR line 10 column B. The subtraction is therefore limited proportionally. | Part-year residency is **out of scope** for this skill (mi-income-tax MI-R-01 refusal applies). | | MI-PEN-T2-07 | **Spouses with different birth years and one deceased.** Joint return with surviving spouse born 1962 and pre-2025-deceased spouse born 1944 — survivor may elect to use decedent's year of birth (Tier 1) **only if** the conditions of MI-PEN-T2-04 are met. Otherwise survivor is Tier 3 and uses own year of birth. | Verify prior-return subtraction claim. **Flag**. | | MI-PEN-T2-08 | **Public safety officer election (Section A under MCL 206.30(11)).** A retired Detroit firefighter born 1960 may elect Section A unlimited public pension treatment **regardless** of Tier 3 status. This election is exercised by checking Form 4884 line 6a. | Verify the taxpayer's service qualifies under the four enumerated categories (police/fire under 1969 PA 312, state police trooper/sergeant under 1980 PA 17, county corrections officer, or substantially-similar federal employment). **Flag for verifier**. | | MI-PEN-T2-09 | **Married filing separately.** Single limits apply to MFS taxpayers (4884 Instr. p. 21 NOTE). MFS taxpayers cannot use the spouse's year of birth even if the spouse is older. The "key person" for MFS is always the filer (4884 Instr. p. 22 Q3). | Deterministic — apply single caps. No discretion. | | MI-PEN-T2-10 | **Interaction with Michigan flow-through entity tax (FTE) elections.** A taxpayer receiving K-1 distributions from a PA 135 of 2021 electing flow-through entity does **not** include those K-1 distributions on Form 4884 — they are business income, not retirement income, even if the recipient is age 70. | Confirm K-1 income is reported on Schedule 1 line 1 / line 2 (business additions/subtractions), not on Form 4884. **Watch for misclassification on platform-prepared returns**. |

Worksheet 3.1 (Example A)

| Line | Amount | |---|---| | Worksheet 3.1 line 1 (cap, single) | $65,897 | | Worksheet 3.1 line 2 (military/NG/railroad) | $0 | | Worksheet 3.1 line 3 (public benefits) | $60,000 | | Worksheet 3.1 line 4 (sum 2+3) | $60,000 | | Worksheet 3.1 line 5 (cap − line 4) | $5,897 | | Worksheet 3.1 line 6 (private benefits) | $0 | | Worksheet 3.1 line 7 (smaller of 5 or 6) | $0 | | Worksheet 3.1 line 8 (3 + 7) | $60,000 |

Worksheet 3.3 (Example B)

| Line | Amount | |---|---| | Line 1 (cap, MFJ) | $131,794 | | Line 2 (military/NG/railroad) | $0 | | Line 3 (line 1 − line 2) | $131,794 | | Line 4 (75% × line 3) | $98,846 | | Line 5 (total retirement on line 8 — Frank's pension + IRA + Helen's 401(k)) | $84,000 | | Line 6 (smaller of 4 or 5) | $84,000 |

Worksheet 3.3 (Example C)

| Line | Amount | |---|---| | Line 1 (cap, single) | $65,897 | | Line 2 (military/NG/railroad) | $0 | | Line 3 (1 − 2) | $65,897 | | Line 4 (75% × line 3) | $49,423 | | Line 5 (total retirement = IRA + private pension) | $75,000 | | Line 6 (smaller of 4 or 5) | $49,423 |

Mutually exclusive sections

Form 4884 has four mutually exclusive computational sections plus a header (lines 1–8). A taxpayer completes exactly one of Section A, Section B, Section C, or Section D based on the Form 4884 page-22 questionnaire and rules MI-PEN-T1-06 through MI-PEN-T1-13.MI-PEN-T1-06 through MI-PEN-T1-13

Form 4884 sections table

| Section | Carry-to line on Form 4884 | Worksheet | Who uses it | |---|---|---|---| | Section A | Line 16 | (logic embedded in Section A; mirrors Worksheet 3.1 structure for public/private cap interaction) | Tier 1 (born pre-1946); Qualified Fire/Police/County Corrections retirees electing MCL 206.30(11) | | Section B | Line 17 | Worksheet 3.1 | Tier 2 retirement subtraction; SSA-exempt-retired-1/1/2013 (born after 1959) | | Section C | Line 18 | Worksheet 3.2 | SSA-exempt-employment-recipient born 1 Jan 1959 – 1 Jan 1964 reached age 62 | | Section D | Line 19 | Worksheet 3.3 | PA 4 of 2023 phased subtraction — Tier 2 and Tier 3 eligible cohort |

Form 4884 line-by-line table

| Line | Purpose | Notes | |---|---|---| | 1–3 | Name, SSN | Both SSNs for MFS; do not enter spouse's name on MFS | | 4, 5 | Year of birth for each spouse | Do not enter spouse year on MFS | | 6a | Box: Qualified Fire/Police/County Corrections retiree | Triggers MCL 206.30(11) unlimited public pension election | | 6b | Box: Born after 1/1/1959 AND retired 1/1/2013 from SSA-exempt employment | Triggers Section B Worksheet 3.1 path with elevated $35k/$55k/$70k caps | | 7a–7d | Deceased spouse info (if claiming based on decedent's year of birth) | Decedent must have died prior to current tax year | | 8 | Retirement benefits listing — up to 8 entries (continuation Form 4973 for >8) | Columns: payer FEIN, distribution code, taxable amount; column 8B flags decedent-attributable; column 8F is the taxable amount included in federal AGI | | 9–15 | Section A (Tier 1 / public safety) computation | Cap subject to military/railroad offset on line 10; line 16 carries to Schedule 1 line 27 | | 16 | Section A total → Schedule 1 line 27 | Do not complete B/C/D | | 17 | Section B total → Schedule 1 line 27 | From Worksheet 3.1 line 12 | | 18 | Section C total → Schedule 1 line 27 | From Worksheet 3.2 line 10 | | 19 | Section D total → Schedule 1 line 27 | From Worksheet 3.3 line 6 |

Schedule 1 interaction table

| Schedule 1 line | Item | Relationship to Form 4884 | |---|---|---| | Line 11 | Income from U.S. govt bonds, military/NG retirement, railroad retirement, Social Security | Subtracted separately, but reduces the Form 4884 cap (Worksheets 3.1/3.2/3.3 line 2) | | Line 14 | Other subtractions (incl. Social Security details) | Tier 2/3 box 24C/24G add $15k/$30k to Form 4884 Worksheet 3.1 line 10 | | Line 27 | Retirement benefits subtraction from Form 4884 | Carries from line 16, 17, 18, or 19 (whichever section completed) |

Worksheet 2 baseline table

| Status | Worksheet 2 baseline | Offset by Schedule 1 line 11 items | |---|---|---| | Single 67+ | $20,000 | Yes (military/NG, railroad, Social Security — except PA 24 of 2025 Tier 3 relief TY 2026–2028) | | MFJ both 67+ | $40,000 | Yes (same offsets) | | MFJ one 67+, one not | $20,000 (older spouse only) | Yes |

Refusal catalogue table

| ID | Situation | Action | |---|---|---| | MI-PEN-R-01 | Part-year or non-resident return | **Refuse** — outside Form 4884 simplification scope; see mi-income-tax MI-R-01 | | MI-PEN-R-02 | Multi-state pension (taxpayer worked for non-Michigan public employer covered by another state's reciprocal pension subtraction rule) | **Refuse** — requires reciprocity analysis under MCL 206.30(1)(f) "public benefits from other states that offer a similar or reciprocal subtraction or exemption for Michigan public benefits" — fact-pattern and other-state-statute review required | | MI-PEN-R-03 | Tier 4-style question — pension received as separation pay before retirement age | **Refuse** — 4884 Instr. p. 19 excludes pre-retirement separation distributions, but borderline cases (e.g., disability retirement before 55) require plan-document review | | MI-PEN-R-04 | Surviving spouse claim where prior joint return is not available | **Refuse** — survivor election turns on whether prior-year subtraction was actually claimed; without the prior return, election is unsupported | | MI-PEN-R-05 | Qualified Fire/Police/County Corrections election where service mix is unclear (e.g., partial Michigan service, partial out-of-state) | **Refuse** — MCL 206.30(11) requires service under 1969 PA 312, 1980 PA 17, or county sheriff facility; out-of-state service does not qualify unless "substantially similar federal employment"; flag for verifier | | MI-PEN-R-06 | Roth conversions in retirement — taxable portion treatment on Form 4884 | **Refuse** — taxable Roth conversion amounts are included in federal AGI; whether they qualify on Form 4884 line 8 turns on the source plan (matched 401(k) → IRA → Roth conversion likely qualifies; unmatched 401(k) → IRA → Roth conversion likely does not). Requires source-plan analysis | | MI-PEN-R-07 | Inherited IRA distributions where decedent was Tier 1 but beneficiary is Tier 3 and not the surviving spouse | **Refuse** — non-spousal inherited IRA falls outside the "qualifying surviving spouse" rule; beneficiary uses own birth year; flag for verifier | | MI-PEN-R-08 | TY other than 2025 or 2026 | **Refuse** — caps and phase-in percentages change annually; use the year-specific Form 4884 instructions | | MI-PEN-R-09 | Michigan city income tax on retirement benefits | **Refuse** — most Michigan cities (Detroit, Grand Rapids, etc.) **exclude** retirement income from city tax base, but each city's rules differ. Out of scope; refer to mi-income-tax MI-R-03 | | MI-PEN-R-10 | Mid-year change in residency where retirement payments straddle | **Refuse** — Schedule NR analysis required; out of scope | | MI-PEN-R-11 | Public Act 24 of 2025 fact patterns where the Social Security offset interaction with the standard deduction is dispositive | **Computational caution** — RAB 2026-1 must be confirmed against the actual published text before relying on the Tier 3 offset relief; flag with [VERIFY:] for human verifier | | MI-PEN-R-12 | Distributions from Michigan-source pension to non-resident — Michigan source-rule analysis | **Refuse** — non-resident return out of scope |

MCL 206.30(1)(f)

The general retirement subtraction language, including the public/private distinction and the phased restoration language added by PA 4 of 2023. The (1)(f)(i) clause is the legacy Tier 1 rule; (1)(f)(ii) is the PA 4 phased restoration.MCL 206.30(1)(f)

MCL 206.30(9)

The Michigan Standard Deduction at age 67+ ($20,000 / $40,000), the box 24C/24G SSA-exempt add-ons, and the offset mechanics. PA 24 of 2025 amended subsection (9) to remove the offset for Tier 3 taxpayers for TY 2026–2028.MCL 206.30(9)

MCL 206.30(10)

Definitional cross-references for retirement-benefit types (qualifying private vs. public, surviving-spouse rules).MCL 206.30(10)

MCL 206.30(11)

Qualified Fire/Police/County Corrections officer unlimited-election clause, added by PA 4 of 2023.MCL 206.30(11)

PA 4 of 2023 (Lowering MI Costs Plan)

Signed 7 March 2023; effective 13 February 2024. Established the four-year phase-in (25% → 50% → 75% → 100%) and the public-safety-officer election.PA 4 of 2023

PA 24 of 2025

Signed 7 October 2025. Amended MCL 206.30(9) to remove the Social Security offset against the Tier 3 Michigan Standard Deduction for TY 2026 through TY 2028.PA 24 of 2025

Form 4884 (TY 2025) and Instructions

The official form and 30-page instructions package. The Worksheets 2, 3.1, 3.2, 3.3 and the "Which Section of Form 4884 Should I Complete?" page-22 questionnaire are the operational core of this skill.Form 4884 (TY 2025) and Instructions

Revenue Administrative Bulletin 2023-22

Treasury's official interpretation of PA 4 of 2023, referenced from the 2025 Form 4884 instructions (page 21).Revenue Administrative Bulletin 2023-22

Revenue Administrative Bulletin 2026-1

Treasury's published guidance on TY 2026 caps and the PA 24 of 2025 amendments. The TY 2026 cap of $67,610 / $135,220 used in this skill traces to this bulletin.Revenue Administrative Bulletin 2026-1