TaxAct automatically transfers information about retirement benefits from the federal return to the Michigan return, however, the program cannot determine if a retirement or pension benefit qualifies to be a subtraction on the Michigan return. You must enter the amount that qualifies for the subtraction, along with any other information that applies.

To enter or review your retirement subtraction information, follow the steps below.

1. Enter the 1099-R on the federal screens. See Form 1099-R - Entering Distributions from Retirement Plans for details.
2. Click State > Michigan.
   • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
3. Click Adjustments to Income.
4. Click Add or Review beside Retirement Benefits.
5. On the Michigan - Retirement Subtraction screen, click Yes.
6. Follow the prompts until you get to the screen titled Michigan – Deceased Spouse, enter or review the applicable information regarding a deceased spouse, and click Continue.
   • It is important to complete all relevant fields to prevent processing issues and/or rejects.
7. On the next screen Michigan - Deceased Spouse, select any boxes that apply, and click Continue.
8. On the screen titled Michigan - Form 1099-R, click Edit (Review in Desktop).
9. Ensure that the correct information was carried from the federal form and make other entries.
   • Check the box Check if this retirement benefit is from a deceased spouse, if applicable.
   • Enter the amount for the Qualified Michigan retirement subtraction.
   • See the Learn More link beside the subtraction entry and the MI DOT website for details on what to enter.
10. Continue through the remaining steps.
11. If applicable, Form 4884 is included on the return. The retirement subtraction flows to Michigan Schedule 1 and Form MI-1040.