As a result of the “Lowering MI Cost Plan,” which was signed into law in March of 2023, many more Michigan seniors will be eligible to subtract some or all of their pension income from Michigan taxes. Previously, only seniors 78 years of age and older were able to subtract pension income from taxes, but this year taxpayers as young as 65 years old may be eligible for a subtraction. As a result, some Michigan senior taxpayers may find their state income tax bills reduced by over $1200.
In addition, many working families will be getting a boost from the new tax bill. The bill quintuples the Working Families Tax Credit, delivering an average combined tax refund of $3,150 to 700,000 families and directly benefiting nearly one million kids – almost half the kids in Michigan.
Bill Leikhim is the Local Coordinator of the Midland branch of AARP Foundation Tax-Aide. Bill reports that, “We here at Midland Tax-Aide can file for the new pension subtraction for free for taxpayers who are eligible for it. Also, we serve low to moderate income families of any age, and we have the expertise to file for the working families credit and any other federal or state tax credits that may apply.”
AARP Foundation Tax-Aide is a national volunteer organization. In Midland it provides free in-person tax return preparation and e-filing services to almost all taxpayers with low to moderate income, regardless of age. The IRS tests and certifies all Tax-Aide counselors every year to make sure they know about and understand the latest changes and additions to the tax code.
The Midland branch of Tax-Aide prepares tax returns on Tuesdays and Thursdays from early February through mid-April, and operates in the Barstow/Shipps Senior Center at the Midland Community Center. Taxes are done by appointment and appointments can be made beginning January 8, 2024 by calling (989) 832-7937 ext. 6.
By Dave Haslam, AARP Tax Aide at Greater Midland Community Center