Surviving Spouse

In 2023, The Lowering MI Costs Plan amended MCL 206.30, which provides taxpayers with more options to choose the best taxing situation for their retirement benefits beginning tax year 2023.

Although subject to a temporary 4-year phase-in period beginning tax year 2023, this new law essentially restores the pre-2012 retirement and pension benefits subtraction for most taxpayers in Michigan beginning in 2026. This law change will ultimately benefit most retirees in Michigan while ensuring that previous benefits for taxpayers in unique circumstances remain unchanged. 

The law change took effect on February 13, 2024. Treasury is committed to ensuring that all eligible retirees can take full advantage of the expanded subtraction options. Therefore, beginning with Michigan’s 2023 tax return, forms, and instructions (e-file and paper format), all retirement and pension benefit subtraction options will be incorporated - including those created in the new law.

This surviving spouse may compute a retirement subtraction based on the date of birth of the older, deceased spouse if all the following are true:

• A joint return was filed for the tax year in which the spouse died.
• A retirement or social security subtraction was claimed for the year in which the spouse died.
• The surviving spouse has not since remarried.

A surviving spouse born after 1945 who has reached the age of 67 may elect to take the greater of the Michigan Standard Deduction or the allowable retirement subtraction based on the date of birth of the older, deceased spouse.

The surviving spouse does NOT have the option of taking the deceased spouse's standard deduction.

A qualified surviving spouse may wish to consult a qualified tax preparer to ensure they are able to deduct the maximum amount of retirement benefits. 

You can also refer to our pension estimator. The estimator will allow you to compare benefits based on your birthdate to your older deceased spouse's birthdate and provide you with the largest eligible deduction.

2023 Pension Estimator

Spouses of Deceased Safety Officers

If a surviving spouse receives the retirement or pension benefits earned by their deceased spouse for service as a qualified fire, police, or corrections retiree the surviving spouse is entitled to claim the retirement or pension subtraction.

Retirement or Pension Subtraction Details for Safety Officers