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February 13, 2024
Question

Michigan qualified public safety pension

  • February 13, 2024
  • 3 replies
  • 0 views

There is still a problem with the Michigan Tax.  I have a qualified pension but it is still taxing my Michigan pension.

    3 replies

    February 13, 2024

    Make sure that you've correctly input your pension exclusion type.  To do this in TurboTax Online: 

    1. Open TurboTax Online
    2. Select  Tax Home in the left pane
    3. On the  Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select StartContinue, or Review/Edit
    4. In the left pane, select Prepare State
    5. Proceed through the screens until you come to the Status of your state returns screen
    6. Select  StartContinue or Edit to the right of Michigan.  If no state is shown, select + Add another state to add Michigan
    7. Proceed through the state screens until you get to the Here's the income that Michigan handles differently screen.      Select Start or Revisit to the right of Retirement Income and Pension Deduction
    8. Pay attention on the Retirement Income and Pension Summary screen.  It looks like this:

     

    You can see, under TYPE, what code you entered when you input your retirement income.

    Then, below that, you can see a guide showing what each retirement type is, and what type of exclusion it qualifies for.

    If the code for the retirement income you've entered doesn't match the exclusion that you're entitled to, select Edit next to the relevant income source and make any adjustments necessary.

    February 13, 2024

    Right but it is still not correct.  For Michigan Public Safety age is not a factor.

    February 13, 2024

    Michigan Public Act 4 made it so retired Police Fire etc collecting a qualified pension, age doesn't matter to not pay State taxes.  It still will not let me.  If I change my DOB it provides the Tiers for pensions.  If anyone has any fix.  please respond.  Thank You

    February 20, 2024

    There must be glitch in the interview process reverting back to unchecked in the yes/no question under the federal where it asks you if the pension is from public safety.

     

    I solved the problem when in the Michigan section of TT by leaving easy step, opening the MI 4884 form, picking the quick view of the pension work sheet, and THERE making sure the public safety box is marked. It then computed the proper credit of MI taxes paid on my pension.

    February 27, 2024

    I have followed these directions and ensured that everything was selected correctly and still not calculating my Michigan tax correctly.  I did notice that when selecting Yes to indicate this money came from employment as a public safety officer it will not save this selection.  Additionally the section asking if "Did you or the Pension Administrator take out money from _______ pension to pay for health insurance?"  I selected yes and entered the amount. The amount is saved but the answer changes to to "No, money wasn't taken out to pay for health insurance.  I have changed multiple times and saved the file, but these responses change back to the incorrect selection.  

    February 27, 2024

    You will have to manually put the answer in. If you open up the forms and find I believe Michigan form 4844 or something like that on left hand side. I had to go up to edit and override to enter it on the forms. Switch back from forms and you should be able to update. Others have done the same with success. TT knew this problem existed and not fixed yet. SMH