HB 4301 Summary

• Amends Section 30 of the Michigan Income Tax Act to clarify retirement and pension benefit deductions, particularly for surviving spouses and individuals born after 1945.

• Eliminates the senior citizen interest, dividend, and capital gains deduction (subdivision p) for individuals born after 1945, effective January 1, 2012.

• Establishes new income deduction limits for individuals born between 1946-1952 at $20,000 (single) and $40,000 (joint), with expanded limits of $35,000-$70,000 for those not covered by Social Security beginning January 1, 2013.

• Provides limited retirement income deductions for persons born after 1952 only after reaching age 67, with reduced $15,000-$30,000 limits for those age 62-66 not covered by Social Security.

• Clarifies that joint return limitations apply based on the older spouse's age, including surviving spouses who have not remarried and continue filing as surviving spouses.