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FAQs for Public Act 4 of 2023 - Retirement State Tax Changes

Closeup of an officer's Michigan State Police Patch on their left shoulder.

FAQs for Public Act 4 of 2023 - Retirement State Tax Changes

  • I am retired from the Michigan State Police Retirement System (SPRS). Will I be exempt from state tax withholding?

  • Can state income tax still be withheld from my pension?

  • If I overpaid my state income tax obligations so far in 2023, will I receive a refund of state tax withholding I've already paid for 2023?

  • Once PA 4 of 2023 takes effect, how much money will this save me?

  • I filed my state tax return before PA 4's effective date. Do I need to file an amended return?

  • When will I see a change to my state tax withholding in my pension payment?

  • Will more federal tax be withheld from my pension as a result of Michigan tax not being withheld?

  • I receive more than one pension payment through ORS. What is the impact for me?

  • I am receiving a portion of my former spouse’s pension. How will this change impact me?

  • Although I am not required to have state tax withheld from my pension, I would still like to have it withheld. Can I do that? 

  • Who should I contact if I have questions about the Michigan tax withholding changes that are not addressed in these FAQs?

  • Does PA 4 of 2023 affect my net pension amount?

  • What other changes does PA 4 of 2023 entail specific to my pension benefit?

  • I retired this month. What will happen to my state tax withholding?

  • I applied for retirement but haven’t retired yet. What will happen to my state tax withholding?

  • If I have more questions on my tax filing obligations with the State of Michigan, what should I do?

  • I have a 401(k) or 457 Plan through the State of Michigan. How does PA 4 of 2023 impact me?

  • I have a 401(k) or 457 Plan through the State of Michigan. I would like to adjust my state tax withholdings on future distributions. Who should I contact?