By Dave Haslam, AARP Tax Aide at Greater Midland Community Center
As a result of the “Lowering MI Cost Plan”, which was signed into law in March of 2023, the number of Michigan seniors who are eligible to subtract some or all of their pension income from Michigan taxes has increased again this year. For 2023, seniors 65 and older were eligible to subtract pension income from taxes, but for the 2024 tax year taxpayers as young as 62 years old are eligible for a subtraction. Also, the amount of pension income that can be subtracted has doubled this year and, as a result, some Michigan senior taxpayers may find their state income tax bills reduced by
over $2,400.
In addition, many working families will continue to get a boost from the “Lowering MI Cost Plan”. The bill quintupled 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. The Midland chapter of Tax-Aide is celebrating its 44th year of providing 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 activity rooms just off the main lobby of the new Greater Midland Community Center. Taxes are done by appointment and appointments can be made beginning January 6, 2025 by calling (989) 832-7937 ext. 6.
