We have talked about this in an earlier blog… but here is a different organization of the facts. Michigan Seniors need to be mindful of all of their pension sources because most are automatically beginning the withholding process for Michigan tax. Our office is here to help if you (or a family member) would like a review of their situation to be sure that they either have or opt out of Michigan withholding.
***********************************
MOST mutual fund companies are going to AUTOMATICALLY withhold 4.35% from your IRA and pension distributions to pay required Michigan taxes. If you are eligible, attached is a form to OPT OUT of paying Michigan taxes. This form can be used for ANY fund company.
If you are born before 1946, you may not have to pay this tax. You need to assess your personal situation and fill out this form if withholding is not something that you need.
If you were born between 1946 and 1952, you are eligible for a deduction.
If you were born AFTER 1952, you still pay the Michigan tax, and you are NOT eligible for deductions.
See the link below for the rules. If you have any doubt, give us a call!
http://www.michigan.gov/documents/ors/FAQs_-_Pension_Tax_V1_12-6-11_370830_7.html#Cat_2_-_Q8
Fron: Jill Gleba, Wealth Manager
Gleba & Associates, Inc.
www.glebaandassociates.com
