Scenario 3
Joint filers born after December 31, 1958, receiving retirement and pension benefits, and receiving surviving spouse benefits from a deceased spouse born in 1944.
Mark and Nancy are filing a joint return. Mark, born in 1959, is receiving private retirement and pension benefits of $25,000. Nancy was born in 1960. Nancy’s deceased spouse, Eduardo, was born in 1944 and died in 2008. Nancy is receiving $35,000 in surviving spouse retirement and pension benefits from Eduardo’s private pension.
Step 1:
Mark and Nancy refer to the Form 4884 instructions in the MI-1040 Booklet and completes “Which Section of Form 4884 Should I Complete?”
They answer the questionnaire as follows:
- Question 1 - Yes
- Question 2 - No
- Question 3 - Married filing jointly and identify Mark as the key person. Eduardo, Nancy’s deceased spouse, may not be the key person as Nancy has remarried since his death.
- Question 4 – 1959, as Mark is the key person.
- Question 5 - No
- Question 6 - No
- Question 7 - No
- Question 8 - No and they are instructed to not file Form 4884 as they are not eligible for a retirement and pension benefit subtraction.