MI - 4884 Pension Schedule



How do I get pension entries to flow to the MI 4884 - Michigan Pension Schedule?

MI Form 4884 pulls information from the Federal 1099 screen, Federal screen 1, and MI screen 1Whether a distribution flows to Form 4884 depends on the following items: 

  • The age of the taxpayer, spouse, or deceased spouse (based on federal screen 1 entries),
  • The 1099 distribution code,
  • The pension type entered on screen 1099,
  • Selections made on the Special Tax Treatments tab of the 1099 screen,
  • Entries on Michigan screen 1 under the 4884 Information section including:
    • Received qualified retirement benefits earned from service by a fire, police, or county corrections retiree (6a),
    • Deceased Spouse information (if the spouse died prior to the current year - otherwise this pulls from federal screen 1),
      • Deceased spouse reached age 62 before dying
      • Deceased spouse reached age 67 before dying
    • Deceased spouse was born after 1952, retired as of 1-1-2013, and received retirement benefits from SSA exempt employment (7d)

Generally, the distribution amount does not flow to the MI 4884 unless the taxpayer, spouse, or deceased spouse was born before January 1, 1953. For recipients born after 1952, retirement/pension amounts are generally taxable to Michigan, unless an exception applies. See the MI DOR for details. 

The MI 4884 Pension Schedule uses a MI Department of Treasury chart, which describes the Federal 1099-R distribution codes and their eligibility for Michigan tax exemption.

Distribution Codes

Distributions using the following codes in box 7 Dist code on the federal screen 1099 must meet these additional conditions in order to flow to MI Form 4884:

Code 2

When the distribution code is 2, the Pension Type (top of the 1099 screen) must also be 2 - Distributions was series of equal periodic payments.

Code 4

When the distribution code is 4, the Pension Type must be one of these:

  • 4 – Distributions due to death made to surviving spouse (unless the box Income received because of a deceased spouse is checked on the Special Tax Treatment tab on the 1099 screen)
  • G – US Government
  • S – State Government
  • Z – City Government
  • C – Civil Service Administration (CSA) Plan
  1. The box Income received because of a deceased spouse must be checked on the Special Tax Treatment tab on the 1099 screen (unless the Pension Type is 4 – Distributions due to death made to surviving spouse).
  2. The deceased spouse’s name, SSN, and date of birth must be entered on MI screen 1 (if the spouse died prior to the current tax year). If a date of birth after December 31, 1952 is keyed, the program will ignore deceased spouse information unless box 7d applies and is marked.

Code 7

When a distribution code 7 refers to income received because of a deceased spouse, that option must be checked on the Special Tax Treatments tab of federal screen 1099 (1099 > Special Tax Treatments tab > Income received because of a deceased spouse).

Be sure to mark any applicable options on Michigan screen 1 under the 4884 Information section.

Overrides/Adjustments

Depending on the distribution code and the age of the taxpayer or spouse, you can use the following fields in the state information area on the bottom of the 1099 screen to make adjustments: 

  • Portion of 1099-R to exclude on state - the amount keyed flows to MI Form 4884. This field functions as an override.
  • Portion of 1099-R NOT qualifying for state exclusion - the amount keyed is subtracted from whatever value currently flows to MI Form 4884. This field functions as an adjustment.