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Scenario 1

Scenario 1

Jerry and Beverly

  • Filing Joint
  • Jerry was born in 1943 and receiving public retirement and pension benefits of $55,000.
  • Beverly was born in 1946 and is receiving private retirement and pension benefits of $70,000.
     
Step 1 - Complete "Which Section of Form 4884 SHOULD I COMPLETE"

Jerry and Beverly refer to the Form 4884 instructions in the MI-1040 Booklet and answer the questionnaire as follows:

  • Question 1 - Yes
  • Question 2 - No
  • Question 3 – Married filing jointly and identify Jerry as the key person.
  • Question 4 – 1943, as Jerry is the key person.
  • Question 5 – Yes, and they are instructed to complete Section A of Form 4884.
Step 2 - Complete Form 4884 with Section A

After completing the questionnaire, Jerry and Beverly proceed to complete Form 4884 along with Section A.

Section A is completed as follows:

  • Line 9 – Enter $128,080, as they are married filing jointly.
  • Line 10 – Leave blank as it does not apply to them.
  • Line 11 – Enter $128,080 after subtracting line 10 from line 9.
  • Line 12 - Enter $55,000, their total public retirement and pension benefits,
  • Line 13 – Enter $73,080 after subtracting line 12 from line 11.
  • Line 14 – Enter $70,000, their total private retirement and pension benefits.
  • Line 15 – Enter $70,000, the smaller of lines 13 or 14.
  • Line 16 – Enter $125,000 after adding lines 12 and 15.
Step 3 - Carry to Schedule 1

Jerry and Beverly carry the amount from Form 4884, line 16 to Schedule 1, line 27.