It is your responsibility to contact your pension administrator to ensure taxes are being withheld from your pension payments, whether you submit an MI W-4P or not. No. If you receive the MI W-4P from your pension administrator, return indicating you are not a resident of Michigan and mark box 1. Back to Top
Back to Top
Back to Top
Back to Top
Subject to limitations based on age and year of birth, the following may qualify as an Distributions from a 401(k) or 403(b) plan are a qualified retirement and pension benefit if Note: Distributions attributable to employee contributions that were not mandated Qualification for a subtraction is a two-step process. If you do not qualify based on the distribution chart in step one, then you do not have a qualified subtraction and step 2 is not applicable. Step One: Form 1099-R reports the total retirement and pension benefits you received during the year. The distribution code(s) describes the condition under which the retirement and pension benefits were paid. The Form 1099-R Distribution Code Chart lists the distribution codes and generally describes eligibility of benefits for subtraction based on each code. Some exceptions exist. If your distribution code is not included in the list or if you have questions on eligibility of your benefits, consult your tax professional. Step Two: Recipients born before 1946 For more information and assistance in calculating your subtraction, see Pension Information. 4. What is the eligible subtraction for pension benefits from employment with a government Employment that is not covered by the federal Social Security Act (SSA) means the worker did not pay Social Security taxes and is not eligible for Social Security benefits based on that employment. Almost all employment is covered by the federal SSA. The most common instances of retirement and pension benefits from employment that is not covered by Social Security are police and firefighter retirees, some federal retirees covered under the Civil Service Retirement System and hired prior to 1984, and a small number of other state and local government retirees. Federal retirees hired since 1984 and those covered by the Federal Employees’ Retirement System are covered under the SSA. A recipient who qualifies under both of the following conditions is entitled to increase the retirement or pension deduction or Michigan Standard Deduction up to $15,000 per eligible taxpayer. • Born between January 1, 1946 and January 1, 1960, or is born after View and answer these questions to determine if you qualify to check the SSA Exempt box on Schedule 1, lines 22C and/or 22G. To incorporate this larger subtraction into the withholding from your retirement or pension benefits, complete an MI W-4P and check the appropriate box. Then submit the MI W-4P to your pension administrator. Back to Top
2. If I file a joint return, which year of birth will determine my eligibility for a retirement and pension subtraction? Recipients born before 1946 Back to Top
|