Michigan Treasury Releases Information on Income Tax Standard Deduction, Treatment of Retirement, Pension Benefits

The Michigan Department of Treasury released a Revenue Administrative Bulletin (RAB) discussing the tax treatment of retirement and pension benefits and the standard deduction following the changes to Section 30 of the Michigan Income Tax Act enacted by Public Act 4 of 2023 and Public Act 24 of 2025. The bulletin: 1) updates RAB 2023-22 by providing further guidance on the deduction for certain public safety personnel and their spouses, both surviving and divorced; 2) clarifies guidance regarding deductions available to surviving spouses who only claimed a social security deduction in the year of the decedent’s death; 3) removes transitional ...