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Michigan Deductions

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Michigan Deductions


For complete instructions, see Michigan Schedule 1 Instructions.

Enter compensation received for active duty in the U.S. Armed Forces included in AGI. Do not include military retirement here.

Note: Compensation from the U.S. Public Health Service is not considered military pay.

  • You may subtract Michigan state and city income tax refunds and homestead property tax credit refunds that were included in AGI.
  • You may deduct to the extent not deducted in calculating AGI, the following:
    • The total of all contributions made by the taxpayer in the tax year to accounts established through the MESP. The deduction may not exceed $5,000 for a single return or $10,000 for a joint return per tax year. A deduction is not allowed for contributions to an MESP account if a withdrawal has been made from that account in any tax year. There are numerous education savings accounts available from other states and investment companies, but Michigan only allows a tax deduction for contributions to accounts established through MESP.

     Miscellaneous subtractions include:

  • The gross income from extraction of nonferrous metallic

    minerals (subject to Michigan severance tax) to the extent

    included in AGI. You must also add back the related

    expenses on line 8. You must attach copies of your federal

    schedules to substantiate your subtraction.

    • Any portion of a qualified withdrawal from an MESP

    account, including the MAP, to the extent included in

    federal AGI. NOTE: Any amounts not included in AGI or

    that are already deducted on the U.S. Form 1040 to arrive

    at the AGI do not qualify for this subtraction. Attach a

    copy of your federal return.

    • Benefits from a discriminatory self-insured medical

    expense reimbursement plan, to the extent these

    reimbursements are included in AGI.

    • Losses from the disposal of property reported in the

    Michigan column of MI-1040D, line 13, or MI-4797,

    line 18b(2).

    • Amount used to determine the credit for elderly or totally

    and permanently disabled from U.S. Form 1040

    Schedule R. Attach a copy.

    • Holocaust victim payments.

You May Not Subtract:

  • Pension and retirement benefits cannot be subtracted on line 22. See Form 4884
  • Itemized deductions from U.S. Schedule A

  • Sick pay, disability benefits, and wage continuation

    benefits paid to you by your employer or by an insurance

    company under contract with your employer.

  • Unemployment benefits included in AGI, except railroad

    unemployment benefits

  • Contributions to national or Michigan political parties or


  • Proceeds and prizes won in State of Michigan regulated

    bingo, raffle, or charity games

  • Distributions from a deferred compensation plan received

    while a resident of Michigan

  • Lottery winnings. (Exception: installment payments from

    prizes won on or before December 30, 1988, may be

    subtracted.) Include installment gross winnings as

    reported on your Form W-2G, box 1, and enter on your

    Schedule W, Table 1.

    Lines 23C and 23F: Benefits


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Article Details
Views: 1981 Created on: Jun 15, 2013
Date updated: Aug 11, 2015
Posted in: STATES, Michigan

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