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How does my SSA Exempt status affect my retirement/pension benefits deduction or Tier 2 Michigan Standard Deduction?

A recipient who qualifies under both of the following conditions is entitled to increase the retirement/pension deduction or Tier 2 Michigan Standard Deduction up to $15,000 per eligible taxpayer.

  • Born between January 1, 1946 and January 1, 1961, or born after December 31, 1952 and retired as of January 1, 2013 and
  • Receives, or whose spouse receives (if filing jointly), retirement/pension benefits from employment with a governmental agency that was not covered by the federal SSA.

Answer the following questions below to determine if you qualify to check the SSA Exempt box on Schedule 1, lines 23C and/or 23G.

Line 23C:

1. Was is your current filing status?

    Single: Continue to question 2.

    Married filing jointly: Continue to question 5.

    Married filing separately: Continue to question 5.

 

2. Was the filer or, if applicable, the deceased spouse, born between January 1, 1946 and January 1, 1961?

    Yes: Continue to question 4.

    No: Continue to question 3.

 

3. Did the filer or, if applicable, the deceased spouse, retire as of January 1, 2013 and receive retirement benefits from SSA 
    exempt employment?

    Yes: Check box 23C.

    No: Stop. You are not eligible to check box 23C.

 

4. Did the filer or, if applicable, the deceased spouse, receive retirement benefits from SSA exempt employment?

    Yes: Check box 23C.

    No: Stop. You are not eligible to check box 23C.

 

5. Was the older of the filer or, if filing jointly, spouse, born between January 1, 1946 and January 1, 1961 and did they reach
    age 62?

    Yes: Continue to question 7.

    No: Continue to question 6.

 

6. Did the filer retire as of January 1, 2013?

    Yes: Continue to question 7.

    No: Stop. You are not eligible to check box 23C.

 

7. Did the filer receive retirement benefits from SSA exempt employment?

    Yes: Check box 23C.

    No: Continue to question 8.

 

8. Did the filer receive retirement benefits from SSA exempt employment as a surviving spouse?

    Yes: Check box 23C.

    No: Stop. You are not eligible to check box 23C.

Line 23G:

1. Was the older of the filer or spouse born between January 1, 1946 and January 1, 1961 and did they reach age 62?

    Yes: Continue to question 3.

    No: Continue to question 2.

 

2. Did the spouse retire as of January 1, 2013?

    Yes: Continue to question 3.

    No: Stop. You are not eligible to check box 23G.

 

3. Did the spouse receive retirement benefits from SSA exempt employment?

    Yes: Check box 23G.

    No: Continue to question 4.

 

4. Did the spouse receive retirement benefits from SSA exempt employment as a surviving spouse?

    Yes: Check box 23G.

    No: Stop. You are not eligible to check box 23G.