Michigan Treasury Issues Information on Individual Income Tax 2020 Retirement, Pension Benefits, Qualified Distributions

The Michigan Department of Treasury April 1 issued information on 2020 retirement and pension benefits for individual income tax purposes. Under state law, retirement and pension benefits include most payments that are reported on a 1099-R for federal tax purposes. Retirement and pension benefits are taxable based on a taxpayer’s date of birth except for United States military pensions, Michigan national guard pensions, social security, railroad benefits, and rollovers not included in the federal adjusted gross income. The Treasury includes information on: 1) qualified distributions and a limitation on the amount of the exemption that can be claimed; 2) distributions ...