Are military retirement benefits exempt from Michigan income tax?

Military retirement benefits paid to retirees of the armed forces of the United States for services performed while a member are exempt from Michigan income tax. Military retirement benefits may be deducted to the extent they are included in federal adjusted gross income (AGI). As with other pensions, only the participant, or in the case of death or disability, his or her surviving spouse, may claim the subtractions.

Military retirement benefits must be reported on the Schedule W.