Tax or not to Tax Michigan Pensions
Back in 2011 Michigan passed a law which taxed pensions in Michigan.
First a little information on pensions and taxation in Michigan. Before the law was passed in 2011, public pensions in Michigan were untaxed and private pension income up to $90,240 was also exempt from Michigan’s state income tax. The law House Bill 4361, did not tax pensions for those born before 1946, it also decreased exemptions for those born between 1946 and 1952, and then the big change, the law subjected the pensions of everybody born after 1952 to full taxation as income. The law became effective on January 1, 2012.
Well State Senator Rick Jones, R-Grand Ledge, and State Representative Tom Barrett, R-Pottersville, have introduced SB 41 and HB 4052, respectively. Their bills would essentially reverse the changes codified into law in 2011.
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