An enhancement to the Michigan Tax Program
Hello Pro Series,
I have an idea on how to help many Michigan tax preparers file returns with the new computer program that the state of Michigan has implemented on reviewing returns this year. Michigan is focusing on tax returns that have a retirement plan distribution with a 4 code to see if it is from a deceased spouse.
The state of Michigan allows you to deduct retirement plan distributions from your taxable income. The only retirement distributions that are not deductible are ones with a code 4 on them that are not from a deceased spouse. An example of a non deductible retirement plan death distribution that is not deductible is one from a parent or from a friend.
There should be an error message that takes you to a screen where you can put in the deceased spouses information if it applies. If the deduction is not allowable then you would put another code in that tells the system that your death distribution is a non deductible retirement plan distribution.
What do the rest of you Michigan tax preparers think of this idea.
Thanks,
J. [removed by Moderator]
