Michigan Schedule 1 Instructions (Additions and Subtractions)

Schedule 1 Instructions (Additions and Subtractions)
Schedule 1 Instructions
Line-by-Line Instructions for Additions and Subtractions (Schedule 1)
Nonresidents, and part-year residents, complete Schedule NR
(see page 57) before proceeding.
If you have income or losses attributable to other states, you
must include all relevant federal schedules and supporting
statements (see page 67). Include Schedule K-1s which
support your federal Schedules B, D, E and 4797. The
type, source and location of the income or loss must be
identified. For assistance conveying this information to
Treasury, refer to the “Business, Rental & Royalty Activity
Worksheet” and the instructions available on Treasury’s
website. If you do not include the federal schedules and
supporting statements, processing of your return may be
delayed or your credit/subtraction may be denied.
Additions to Income
Line  1:  Residents enter nonbusiness gross interest,
dividends, and income from obligations or securities of
states and their political subdivisions other than Michigan.
Residents and nonresidents report non-Michigan municipal
business income from a partnership, S corporation,
estate, or trust with Michigan business activity. Business
income subject to apportionment must be included on the
Michigan Schedule of Apportionment (MI-1040H). You
may reduce this income by related expenses not allowed
as a deduction by Section 265(a)(1) of the Internal Revenue
Code (IRC).
Line  2:  Michigan residents enter the deduction taken for
self-employment tax on your federal return and for other
taxes on or measured by income, such as your share of the
taxes paid by an estate or trust, your share of city income
tax paid by partnerships or S corporations, or your share of
flow-through (pass-through) entity tax paid to another
state by a flow-through entity. Part-year and nonresidents
enter the amount from the Michigan Schedule NR, line 13,
Column B that is attributable to the deduction taken for
self-employment tax on your federal return and for other taxes
measured by income, such as your share of city income tax
paid by a partnership or S corporations, or your share of the
taxes paid by an estate or trust.
If you are a direct or indirect member of a flow-through entity
that elected to pay the Michigan flow-through entity tax, add
your share of those taxes paid and reported to you by that
flow-through entity and deducted on the flow-through entity’s
federal tax return. If you apportioned this flow-through
income using an MI-1040H, the apportionment percentage
from line 8 should be applied to the tax reported by the
flow-through entity. To support your addition, include a
copy of the Schedule K-1 with any of the following received
from the flow-through entity: Schedule K-1 notes, Michigan
Flow-through Entity Tax Information for Direct Members
report, Indirect Share of Michigan Flow-through Entity
Tax Information for Direct Members report, or the same
information in any other format.
An electing flow-through entity that files a composite return
on your behalf should report your addition on that composite
return (Form 807). Do not report the addition here. Similarly,
your share of a state or local tax deducted federally by any
other flow-through entity, including for any other state’s
taxes, must be reported here to the extent it decreased your
distributive share and AGI.

Line  3:  Use Michigan Adjustments of Capital Gains and
Losses (MI-1040D) and related Michigan Sales and Other
Dispositions of Capital Assets (MI-8949) only if you have
capital gains or losses attributable to: (1) an election to
use Section 271 treatment for property acquired before
October 1, 1967; (2) the sale or exchange of U.S. obligations
which cannot be taxed by Michigan; or (3) the sale or exchange
of property located in other states.
If you reported gains on U.S. Form 4797 on property acquired
before October 1, 1967, or located in other states, adjust the
gain on the Michigan Adjustments of Gains and Losses From
Sales of Business Property (MI‑4797).
Enter gains from the Michigan column of MI-1040D, line 12,
and MI-4797, line 18b. Instructions are with each form.
Line  4:  Enter losses from a business or property located in
another state which you own as a sole proprietor, a partner in a
partnership, a shareholder in an S corporation, or as a member
of a pass-through entity.
If your business is taxed by both Michigan and another state,
the loss must be apportioned. You must include a Michigan
Schedule of Apportionment (MI-1040H).
If you have a federal excess business loss limitation, you
must complete Form MI-461. Follow instructions provided on
Form MI-461 to determine if any amount is to be included
here.
Line  5:  Enter the net loss from the federal column of your
MI-1040D, line 13, or MI‑4797, line 18b as a positive number.
Line 6: Enter gross expenses from the production of oil and
gas or extraction of nonferrous metallic minerals subject
to Michigan severance tax to the extent deducted from AGI.
Subtract the related gross income on line 19. You must include
a 2023 Michigan Report of Oil, Gas, and Nonferrous Metallic
Minerals Extraction - Income and Expenses (Form 5889).
Line  7: Residents, enter the amount of the federal NOL
deduction to the extent included in AGI. Nonresidents and
part-year residents see instructions for Schedule NR, line 11.
Line 8: Enter the total of the following (include an additional
schedule if necessary):
•	 Add, to the extent not included in AGI, the amount of
money withdrawn in the tax year from a Michigan
Education Savings Program (MESP) account, including the
Michigan 529 Advisor Plan (MAP), or a Michigan
Achieving a Better Life Experience Program (MiABLE)
account, if the withdrawal was not a qualified withdrawal
as provided in the MESP or ABLE Acts. You may first
exclude any amount that represents a return of contributions
for which no deduction was claimed in any prior tax year.
•	 Refund received from a Michigan Education Trust (MET)
contract. If you deducted the cost of a MET contract in
previous years and received a refund from MET during
2023 because the MET contract was terminated, enter the
smaller of: (1) the refund you received or (2) the amount of
the original MET contract price including fees which you
deducted in previous years.
NOTE: Michigan treatment of bonus depreciation conforms
with federal law. Adjustments for bonus depreciation are not
required.
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Subtractions From Income
NOTE:  Nonresidents and part-year residents, subtract only
income attributable to Michigan (Schedule NR, column B) that
is not included on line 13.
Line  10:  Enter income from U.S. government obligations
(e.g., Series EE bonds, Treasury notes), including income from
U.S. government obligations received through a partnership,
S corporation, or other pass-through entity. This subtraction
must be reduced by related expenses used to arrive at AGI.
Investment companies that invest in U.S. obligations are
permitted to pass the tax-free exemption to their shareholders.
If income from U.S. government obligations exceeds $5,000,
include a copy of your U.S. Schedule B and a supporting
statement listing the amounts received, the source, and the
issuing agency. Capital gains from the sale of U.S. government
obligations must be adjusted on your MI‑1040D.
Line  11:  Include military retirement benefits due
to service in the U.S. Armed Forces or Michigan
National Guard or taxable Tier 1 and Tier 2 railroad
retirement benefits here and on Schedule W, Table 2.
Other qualifying public or private retirement benefits
must be reported on the Michigan Pension Schedule
(Form 4884) and Schedule 1, line 27.
Line  12:  Enter the gains from the federal column of your
MI‑1040D, line 12, and MI-4797, line 18b. See instructions for
Schedule 1, line 3.
Line 13: Income Attributable to Another State.
Nonresidents and part-year residents, complete Schedule NR.
See instructions on page 58. Include federal schedules.
Michigan residents cannot subtract salaries and wages or other
compensation earned outside Michigan. However, they may be
entitled to a tax credit for income tax imposed by government
units outside Michigan (see page 10).
Residents may subtract, to the extent included in AGI:
•	 Net business income earned in other states, and
•	 Net rents and royalties from real property or tangible
personal property located or used in another state.
Business income that is taxed by Michigan and another state
must be apportioned, including interest, dividends and capital
gains. You must include Form MI-1040H. Income reported on
the MI-4797 and carried to the MI-1040D is business income,
potentially subject to apportionment.
Capital gains from the sale of real property or tangible
personal property located outside of Michigan must be
adjusted on the MI-1040D.
If you have a federal excess business loss limitation, you must
complete Form MI-461. Follow instructions provided on Form
MI-461 to determine if any amount is to be included here.
Line  14:  Compensation received for active duty in the U.S.
Armed Forces included in AGI should be entered here and on
Schedule W, Table 1. Enter only the taxable portion of Social
Security and Military pay included on your U.S. Form 1040.
Do not include total Social Security benefits or any Tier 1 and
Tier 2 railroad retirement benefits.
NOTE:  Compensation from the U.S. Public Health Service,
contracted employee pay and civilian pay are not considered
military pay.
Line  15:  Renaissance Zone deduction. To be eligible you
must meet all the following requirements:
14

•	 B
 e a permanent resident of a Renaissance Zone designated
prior to January 1, 2012, for at least 183 consecutive days
•	 Be approved by your local assessor’s office
•	 Not be delinquent for any State or local taxes abated by
the Renaissance Zone Act
•	 File an MI-1040 each year
•	 Have gross income of $1 million or less.
If you were a full-year resident of a Renaissance Zone, you
may subtract all income earned or received. Unearned
income, such as capital gains, may have to be prorated.
If you lived in the Zone at least 183 consecutive days
during 2023, subtract the portion of income earned while
a resident of the Zone. If you are a part-year resident of
a Zone, complete and include a Schedule NR with your
MI-1040. (See “Note” on the bottom of the Schedule NR
instructions, page 58.)
Certain Renaissance Zones began to phase out in 2007. The
tax exemption is reduced in increments of 25 percent during
the Zone’s final three years of existence. If you are a resident
of a Zone that is phasing out (check with your local unit of
government), you must reduce your deduction as follows:
•	 25 percent for the tax year that is two years before the
final year of designation as a Renaissance Zone
•	 50 percent for the tax year immediately preceding the
final year of the designation as a Renaissance Zone
•	 75 percent for the tax year that is the final year of the
designation as a Renaissance Zone.
For additional information regarding qualifications for the
Renaissance Zone deduction, contact your local assessor’s
office.
Line  16:  Subtract Michigan state and city income tax
refunds and homestead property tax credit refunds that were
included in AGI. If you did not itemize on your federal return
for tax year 2022, your 2022 refunds should not be included
in your AGI and should not be subtracted here.
If you are a farmer, subtract (to the extent included in AGI)
the amount that your state or city income tax refund and
homestead property tax credit exceeds the business portion
of your homestead property tax credit.
If you are a direct or indirect member of a flow-through
entity that elected to pay the Michigan flow-through entity
tax, subtract your share of a refund of that tax received by
that flow-through entity and included in your distributive
share. If you apportioned this flow-through income
using an MI-1040H, the apportionment percentage from
line 8 should be applied to the refund reported by the flowthrough entity. To support your addition, include a copy of
the Schedule K-1 with any of the following received from
the flow-through entity: Schedule K-1 notes, Michigan
Flow-through Entity Tax Information for Direct Members
report, Indirect Share of Michigan Flow-through Entity
Tax Information for Direct Members report, or the same
information in any other format.
An electing flow-through entity that files a composite
return on your behalf should report your subtraction on that
composite return (Form 807). Do not report the subtraction
here.
Line  17:  Michigan 529 Contributions (MESP, MAP,
MiABLE). There are many 529 savings/investment
programs nationwide, but Michigan allows a tax deduction

for contributions only to the Michigan Education Savings
Program (MESP), MI 529 Advisor Plan (MAP), and Michigan
Achieving a Better Life Experience Program (MiABLE).
Deduct, to the extent not deducted in determining AGI, the
total contributions made to the plan less qualified withdrawals
and rollovers (net) made in the tax year by the taxpayer.
Determine the net for each Michigan 529 account separately.
The total deductions on line 17 may not exceed $10,000 for a
single return or $20,000 for a joint return, and are subject to
the following additional restrictions:
•	 MESP and MAP accounts combined: may not exceed
$5,000 for a single return or $10,000 for a joint return.
•	 MiABLE accounts: may not exceed $5,000 for a single
return or $10,000 for a joint return.
Line  18:  Michigan Education Trust (MET). You may
deduct the following:
•	 If you purchased a MET 529 prepaid tuition contract during
2023,  you may deduct the total contract price (including the
processing fee).
•	 If you made a charitable contribution to the MET
Charitable Tuition Program during 2023, you may deduct
the total contribution amount. You should have received a
receipt from MET to confirm the amount. All charitable
donations will go toward providing scholarships to former
foster care students attending Michigan colleges.
•	 If you purchased a MET payroll deduction, monthly
purchase or pay-as-you-go contract, you may deduct the
amount paid on that contract during 2023 (not including
fees for late payments or insufficient funds). You will
receive an annual statement from MET specifying this
amount.
•	 If you have terminated a MET contract, you may deduct
the amount included in AGI as income to the purchaser.
Line  19: Subtract the gross income subject to Michigan
severance tax from the Michigan production of oil and gas
or extraction of nonferrous metallic minerals to the extent
included in AGI. Add back the related expenses on line 6.
Include copies of applicable federal schedules. You must
include a 2023 Michigan Report of Oil, Gas, and Nonferrous
Metallic Minerals Extraction - Income and Expenses (Form
5889), and copies of applicable federal schedules.
Line  20: Tax Agreement Tribes: A “Resident Tribal
Member” (Member must be on the list submitted by their
Tribe to the State of Michigan) of a federally recognized
Indian tribe that has an active tax agreement with the State of
Michigan may subtract certain income that is included in his
or her AGI identified on line 10 of the MI-1040. Such exempt
income may include income derived from wages, interest,
and pension income. For a list of agreement tribes, go to
www.michigan.gov/taxes and select “Individual Income
Tax.” Under Special Filing Situations, select “Tax
Information for Native Americans.” A list of tribes’ names
will be available; click to access the tax agreement and
proceed to Section IV. Non-Tax Agreement Tribes: If
your tribe is not listed, your tribe does not have an active
tax agreement with Michigan. Non-agreement members,
see Revenue Administrative Bulletin 1988-47 for guidelines
in determining exempt income that may be subtracted on
line 20.
NOTE: Michigan income earned while living outside of your
Agreement Area (see your tribe’s agreement for a description
of your Agreement Area) or Indian Country (as defined

under 18 U.S.C. 1151 for Non-Agreement Tribes) may not be
subtracted from Michigan AGI.
Line 22: Include ordinary and necessary expenses not
deducted in determining AGI and for carrying out a trade or
business licensed as a recreational marihuana establishment
under the Michigan Regulation and Taxation of Marihuana
Act (MRTMA). Only subtract expenses that would have been
deductible had section 280E of the Internal Revenue Code not
been in effect. Expenses related to a trade or business licensed
as a medical marihuana facility under the Medical Marihuana
Facilities Licensing Act (MMFLA) may not be subtracted.
Submit a copy of the license(s) issued under the MRTMA.
Include an itemized breakdown of the expenses incurred. An
entity holding licenses under both the MRTMA and MMFLA
must identify, itemize, and account for sales and expenses
attributable to the portion of the business that is licensed for
adult-use marihuana and medical marihuana, separately.
Line  23:  Miscellaneous subtractions only include:
•	 Any portion of a qualified withdrawal from an MESP
account, including the MAP, or MiABLE account to the
extent included in federal AGI. NOTE: Any amounts not
included in AGI or that are already deducted on the U.S.
Form 1040 to arrive at AGI do not qualify for this
subtraction.
•	 Benefits from a discriminatory self-insured medical
expense reimbursement plan, to the extent these
reimbursements are included in AGI.
•	 Losses from the disposal of property reported in the
Michigan column of MI-1040D, line 13, or MI-4797,
line 18b.
•	 Amount used to determine the credit for elderly or totally
and permanently disabled from U.S. Form 1040 Schedule R,
line 19. Include a copy.
•	 Holocaust victim payments.
•	 If you elected to itemize deductions on your federal return
this tax year (you did not take the standard deduction) and
deducted wagering losses, you may be eligible to deduct
wagering losses here. Residents: report the amount of
wagering losses you deducted on U.S. Form 1040
Schedule A. Nonresidents: report the amount of wagering
losses you deducted on U.S. Form 1040 Schedule A, but
only those wagering losses attributable to wagering
transactions placed at or through a casino or race track
located in Michigan. Further, those losses are limited to
the amount of wagering gains from wagering transactions
placed at or through a casino or race track located in
Michigan.
Miscellaneous subtractions do not include the following
(this is not an all-inclusive list):
•	 Retirement and pension benefits. See Form 4884
•	 Itemized deductions from U.S Schedule A (except the
wagering losses described above)
•	 Sick pay (except railroad sick pay included in AGI),
disability benefits, and wage continuation benefits paid to
you by your employer or by an insurance company under
contract with your employer
•	 Unemployment benefits included in AGI, except railroad
unemployment benefits
•	 Contributions to national or Michigan political parties or
candidates
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•	 P
 roceeds and prizes won in State of Michigan regulated
bingo, raffle, or charity games
•	 Distributions from a deferred compensation plan received
while a resident of Michigan
•	 Lottery winnings. (Exception: installment payments from
prizes won on or before December 30, 1988, may be
subtracted.) Include installment gross winnings as
reported on your Form W-2G, box 1, and enter on your
Schedule W, Table 1.
•	 Adjustments for bonus depreciation not included in AGI.
Lines 24C and 24G: Benefits From Employment with a
Governmental Agency Not Covered by the Federal Social
Security Act (SSA).
SSA exempt employment is not covered by the federal
SSA, which means the worker did not pay Social Security
taxes and is not eligible for Social Security benefits based
on that employment. Almost all employment is covered by
the federal SSA. The most common instances of retirement
and pension benefits from employment that is not covered
by Social Security are police and firefighter retirees, some
federal retirees covered under the Civil Service Retirement
System and hired prior to 1984, and a small number of other
state and local government retirees. Federal retirees hired
since 1984 and those covered by the Federal Employees’
Retirement System are covered under the SSA.
A recipient who qualifies under both of the following
conditions is entitled to a greater retirement or pension
deduction or Tier 2 Michigan Standard Deduction.
•	 Born between January 1, 1946 and January 1, 1962, or is
born after December 31, 1952 and retired as of January 1,
2013 and
•	 Receives, or whose spouse receives (if filing a joint
return), retirement or pension benefits from employment
with a governmental agency that was not covered by the
federal SSA.
Line 24C: Answer the following questions to determine if
you should check box 24C.
1. W hat is your current filing status?
Single: Continue to question 2.
Married filing jointly: Continue to question 5.
	     Married filing separately: Continue to question 5.
2. W
 as the filer or, if applicable, the deceased spouse,
born between January 1, 1946 and January 1, 1962
and did they reach age 62?
Yes: Continue to question 4.
    No: Continue to question 3.
3. Did the filer or, if applicable, the deceased spouse,
retire as of January 1, 2013 and receive retirement
benefits from SSA exempt employment?
Yes: Check box 24C.
    No: Stop. You are not eligible to check box 24C.
4. D
 id the filer or, if applicable, the deceased spouse,
receive retirement benefits from SSA exempt
employment?
Yes: Check box 24C.
    No: Stop. You are not eligible to check box 24C.
16

5. Was the older of the filer or, if filing jointly, spouse,
born between January 1, 1946 and January 1, 1962
and did they reach age 62?
    Yes: Continue to question 7.
    No: Continue to question  6.
6. Did the filer retire as of January 1, 2013?
Yes: Continue to question 7.
    No: Stop. You are not eligible to check box 24C.
7. Did the filer receive retirement benefits from SSA
exempt employment?
    Yes: Check box 24C.
    No: Continue to question 8.
8. Did the filer receive retirement benefits from SSA
exempt employment as a surviving spouse?
    Yes: Check box 24C.
    No: Stop. You are not eligible to check box 24C.
Line 24D: Check the box if you were born after 1952, were
retired as of January 1, 2013 and also received retirement
benefits from SSA exempt employment.
Line 24G: Answer the following questions to determine if
you should check box 24G.
1. Was the older of the filer or spouse born between
January 1, 1946 and January 1, 1962 and did they
reach age 62?
Yes: Continue to question 3.
    No: Continue to question 2.
2. Did the spouse retire as of January 1, 2013?
Yes: Continue to question 3.
    No: Stop. You are not eligible to check box 24G
3. Did the spouse receive retirement benefits from SSA
exempt employment?
    Yes: Check box 24G.
    No: Continue to question 4.
4. Did the spouse receive retirement benefits from SSA
exempt employment as a surviving spouse?
    Yes: Check box 24G.
    No: Stop. You are not eligible to check box 24G.
Line 24H: Check the box if your spouse was born after 1952,
was retired as of January 1, 2013 and also received retirement
benefits from SSA exempt employment.
Line 25: Tier 2 Michigan Standard Deduction. If
the older of you or your spouse (if filing a joint return)
was born during the period January 1, 1946 through
December 31, 1952, and reached the age of 67, you are
eligible to deduct the larger of either: your Michigan
Standard Deduction against all income types, or your
retirement and pension subtraction. If you receive retirement
and/or pension benefits included in AGI, refer to “What
Section of Form 4884 Should I Complete?” on page 22. Do
not complete this line if you claim an amount on line 27. If
you do not have retirement and/or pension benefits included
in AGI, the Michigan Standard Deduction is $20,000 for a
return filed as single or married filing separately, or $40,000
for a married filing jointly return. If you checked either box
24C or 24G your standard deduction is increased by $15,000.
If you checked both boxes 24C and 24G your standard

deduction is increased by $30,000. The standard deduction is
reduced by any amounts reported on line 11 and any military
pay included on line 14.
If you are a surviving spouse who has reached the age of 67,
has not remarried, and claimed a subtraction for retirement
and pension benefits on a return jointly filed with the
decedent in the year your spouse died, you are eligible for
your standard deduction. However, if you receive retirement
and pension benefits included in AGI, refer to “What Section
of Form 4884 Should I Complete?” on page 22.
In most cases, taxpayers who are eligible to complete line 25
do not complete lines 26, 27 or 28. However, if a taxpayer is
the unremarried surviving spouse of a decedent born prior
to 1946 who also died after reaching age 65, check the box
below line 28 to claim both the Tier 2 Michigan standard
deduction on line 25 and a dividend/interest/capital gains
deduction for investment  income on line 28 (if applicable).
Line 26: Tier 3 Michigan Standard Deduction. If the
older of you or your spouse (if filing a joint return) was
born during the period January 1, 1953 through January
1, 1957, and reached the age of 67 on or before December
31, 2023, you may be eligible to deduct the larger of either:
your Michigan Standard Deduction against all income
types, or your retirement and pension subtraction. You
are considered 67 the day before your 67th birthday. If you
receive retirement and/or pension benefits included in AGI,
refer to “What Section of Form 4884 Should I Complete?” on
page 22. Do not complete this line if you claim an amount
on line 27. If you do not have retirement and/or pension
benefits included in AGI, the Michigan Standard Deduction
is up to $20,000 for a return filed as single or married filing
separately, or up to $40,000 for a married filing jointly
return. Exemption(s) claimed on MI-1040, lines 9a and 9d,
taxable Social Security benefits, military compensation
(including retirement benefits), Michigan National Guard
retirement benefits and railroad retirement benefits included
in AGI may reduce the amount eligible to be claimed on this
line. To determine your Tier 3 Michigan Standard Deduction,
complete Worksheet 2 on page 18 and enter the result on this
line.
Worksheet 2 has been set up such that a taxpayer claiming
the Tier 3 Michigan Standard Deduction will still complete
the personal exemption and applicable subtractions normally.
If you are a surviving spouse who has reached the age of 67,
has not remarried, and claimed a subtraction for retirement
and pension benefits on a return jointly filed with the
decedent in the year your spouse died, you are eligible for
your standard deduction. However, if you receive retirement
and pension benefits included in AGI, refer to “What Section
of Form 4884 Should I Complete?” on page 22.
In most cases, taxpayers who are eligible to complete line 26
do not complete lines 25, 27 or 28. However, if a taxpayer
is the unremarried surviving spouse of a decedent born prior
to 1946 who also died after reaching age 65, check the box
below line 28 to claim both the Tier 3 Michigan standard
deduction on line 26 and a   dividend/interest/capital gains
deduction on line 28 (if applicable).
Line  27:  Qualifying retirement and pension benefits
included in your AGI may be subtracted from income.
Retirement and pension benefits are taxed differently                

depending on the age of the recipient. See “Which Benefits  
are Taxable”. You must include Form 4884. If you were born
during the period January 1, 1946 through January 1, 1957,
see lines 25 or 26.
Line  28:  Senior citizens born prior to 1946 (or the
unremarried surviving spouse of a decedent born prior to
1946 who also died after reaching age 65) may subtract
interest, dividends, and capital gains included in AGI. This
subtraction is limited to a maximum of $13,712 on a single
return or $27,424 on a joint return, which must be reduced by
any deduction for:
•	 Military (including Michigan National Guard) retirement
benefits from line 11
•	 Railroad retirement benefits from line 11
•	 Public and private retirement and pension benefits from
line 27
•	 Amount claimed for the federal credit for the elderly
and totally and permanently disabled as a subtraction on
line 23.
For further assistance, go to www.michigan.gov/iit.
DIVIDEND/INTEREST/CAPITAL GAINS
DEDUCTION FOR TAXPAYERS 77 YEARS AND
OLDER
1. Enter $13,712 if single or married filing
separately or $27,424 if married filing a
joint return..................................................
2. Enter the amount from Schedule 1, line 11.
3. Enter the amount from Schedule 1, line 27	
4. Enter the amount claimed for the federal
credit for the elderly and totally and
permanently disabled from
Schedule 1, line 23......................................
5. Add lines 2 through 4.................................
6. Subtract line 5 from line 1. If line 5 is
greater than line 1, enter “0”.......................
7. Enter interest, dividends, and capital
gains included in AGI.................................
8. Enter the smaller of line 6 or line 7 here
and, if greater than “0”, carry to
Schedule 1, line 28......................................

Line 30: 2023 Michigan NOL Deduction. Enter the amount
calculated on Michigan Net Operating Loss Deduction
(Form 5674).

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WORKSHEET 2: TIER 2 AND TIER 3 MICHIGAN STANDARD DEDUCTION
Calculation of Tier 2 or Tier 3 Michigan Standard Deduction for taxpayers born during the period January 1, 1946 through
January 1, 1957. Note: If married, filing a joint return, the older of you or your spouse must be born during this period to qualify for the
Michigan Standard Deduction.
1. Enter $20,000 if single or married filing separately or $40,000 if married filing a joint return.................................................
2. Enter the amount based on your answer to line 2a or line 2b. If you do not qualify under line 2a or 2b, enter $0..............	
a.

If the older of you or your spouse (if filing a joint return) was born during the period January 1, 1946 through
December 31, 1952:
i. Enter $15,000 if single or if filing jointly and one spouse checked either box 24C or 24G on Schedule 1.
ii. Enter $30,000 if filing jointly and both spouses checked boxes 24C and 24G on Schedule 1.

b.

If the older of you or your spouse (if filing a joint return) was born during the period January 1, 1953 through January
1, 1957:
i. Enter $15,000 if single or if filing jointly and one spouse checked either boxes 24C and 24D or 24G and 24H on
Schedule 1.
ii. Enter $30,000 if filing jointly and both spouses checked boxes 24C and 24D, and 24G and 24H on Schedule 1.

3. Add lines 1 and 2.................................................................................................................................................................
4. Enter the amount of compensation received for active duty in the U.S. Armed Forces included in AGI from Schedule 1,
line 14. (Nonresidents and part-year residents, enter total compensation; do not enter only the portion attributable to
Michigan.)............................................................................................................................................................................
5. Enter military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard or taxable railroad
retirement benefits included in AGI from Schedule 1, line 11. (Nonresidents and part-year residents, enter total benefits;
do not enter only the portion attributable to Michigan.).......................................................................................................
6. Add lines 4 and 5.................................................................................................................................................................
7. Subtract line 6 from line 3. If line 6 is greater than line 3, enter $0.....................................................................................
a.

If the older of your or your spouse (if filing a joint return) was born during the period January 1, 1946 through
December 31, 1952, STOP; the amount on line 7 is your Tier 2 Michigan Standard Deduction. If you also receive
qualified retirement benefits that are included in AGI, you may instead qualify for a larger retirement and pension
benefits subtraction; see “Which Section of Form 4884 Should I Complete?” on page 22.
If you claim the Tier 2 Michigan Standard Deduction, enter the amount from line 7 on Schedule 1, line 25.

b.

If the older of you or your spouse (if filing a joint return) was born during the period January 1, 1953 through January
1, 1957 and reached age 67, you or your spouse was retired as of January 1, 2013, and also received retirement
benefits from SSA exempt employment, STOP; the amount on line 7 is your Tier 2 Michigan Standard Deduction. If
you also receive qualified retirement benefits that are included in AGI, you may instead qualify for a larger retirement
and pension benefits subtraction; see “Which Section of Form 4884 Should I Complete?” on page 22.
If you claim the Tier 2 Michigan Standard Deduction, enter the amount from line 7 on Schedule 1, line 25.

c.

If the older of you or your spouse (if filing a joint return) was born during the period January 1, 1953 through
January 1, 1957 and you don’t meet the other qualifications described in line 7b, continue to line 8 to calculate your
Tier 3 Michigan Standard Deduction.

8. Enter the amount of taxable Social Security benefits included in AGI from Schedule 1, line 14.........................................
9. Enter the amounts from MI-1040, lines 9a and 9d. (Nonresidents and part-year residents, enter total of lines 9a and
9d multiplied by the percentage from Schedule NR, line 18. If you are required to complete Worksheet 6 – Exemption
Allowance from Schedule NR, carry the amount from Worksheet 6, line 22 to this line.)...................................................
10. Add lines 8 and 9...............................................................................................................................................................
11. Subtract line 10 from line 7. If line 10 is greater than line 7, enter $0................................................................................
The amount on line 11 is your Tier 3 Michigan Standard Deduction. If you also receive qualified retirement benefits that are included in AGI, you may
instead qualify for a larger retirement and pension benefits subtraction; see “Which Section of Form 4884 Should I Complete?” on page 22. If you
claim the Tier 3 Michigan Standard Deduction, enter the amount from line 11 on Schedule 1, line 26.

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