Loading chat...
MI HB5770
Bill
Status
2/17/2022
Primary Sponsor
Pat Outman
Click for details
AI Summary
-
Eliminates the 3-tier income limitation system for retirement and pension benefit deductions that currently applies through December 31, 2022, effective January 1, 2023.
-
Beginning January 1, 2023, allows all taxpayers to deduct retirement or pension benefits not deductible under other provisions without dollar amount caps or age-based restrictions, regardless of birth year.
-
Removes the current age-based tiered deduction limits (applying different caps for those born before 1946, 1946-1952, and after 1952) and replaces them with unlimited deductions for all retirees.
-
Maintains existing deductions for other retirement income sources including Social Security benefits, armed forces compensation, and railroad retirement benefits.
-
Increases the personal exemption amount by $600.00 starting in the 2022 tax year, with future adjustments based on the Consumer Price Index.
Legislative Description
Individual income tax: retirement or pension benefits; 3-tier limitations and restrictions on deduction for retirement or pension benefits based on taxpayer's age; eliminate, and broaden deductions for pensions. Amends sec. 30 of 1967 PA 281 (MCL 206.30).
Individual income tax: deductions
Last Action
Bill Electronically Reproduced 02/17/2022
2/22/2022