Since Jan. 1, 2012, most pension distributions are subject to Michigan tax. Some exclusion from income is available, depending on the year the recipient was born. Pensions that are never taxed by Michigan include U.S. military, Michigan National Guard, Social Security, railroad, and rollovers that were not federally taxed.Know More
As of 2015, taxpayers born before 1946 can exclude up to $49,027 of private pensions for single or married filing separate, or $98,054 for married filing joint. For this age group, civil service and Michigan public-source pensions are entirely excluded but decrease the amount available for private pension exclusion. Michigan residents born before 1946 who receive public pensions from certain other states can also exclude this income. File Form 4884 to claim the exclusion.
Taxpayers born after 1946 but before 1953 are eligible for smaller exclusions of pension income. Retirees born after 1952 include the taxable amount of their IRA or 401k distribution in their Michigan tax calculation with no deduction or exclusion.Learn more about Taxes
According to the IRS, a tax payment plan is a way for individuals to make payments on their taxes in monthly installments. As long as taxpayers pay the full amount owed, they can avoid or lower the amount of interest and penalties owed as well as the fees required to set up the payment plan.Full Answer >
While often used interchangeably, state tax and inheritance tax represent two distinct types of death taxes. An estate tax is a death tax levied on the estate whereas an inheritance tax is imposed on the heir who receives the estate.Full Answer >
The largest portion of local government tax revenue in the United States comes from residential and commercial property taxes. Overall, local governments obtained more than 75 percent of their fiscal year 2010 tax revenues from property taxes, as reported by the U.S. Census Bureau. During that same fiscal year, New Hampshire was the state whose local governments relied most heavily on property taxes, with New Jersey and Vermont in second and third place, respectively.Full Answer >
In the United States, a cow flatulence tax does not exist, but some European nations have imposed taxes on cow owners. The main argument for a cow flatulence tax is that cows release methane, one of the greenhouse gases that causes climate change.Full Answer >