PA 4 of 2023 phases in an income tax reduction over the course of four years for retirees who receive a pension, beginning with the 2023 tax year (filed in 2024). Michigan’s 2023 tax return, forms, and instructions (e-file and paper format) incorporate all retirement and pension benefit subtraction options – including those created in the new law. Retirees who filed their taxes prior to the law’s effective date need not file an amended return. The Michigan Department of Treasury will work impacted returns as they are received and prepare them for release after the law’s effective date. For more details, see the Michigan Department of Treasury website.

 

For joint returns, the birth year of the older spouse can be used.