Issue 9. Do the special rules for surviving spouses apply under PA 4 to all available deduction options?

Answer: Yes, if the surviving spouse meets the qualifying conditions. Exceptions to these conditions apply for certain surviving spouses, as described below.

For purposes of subsections 30(9)(f) and 30(10)(e) of the MITA, a surviving spouse may compute a retirement subtraction based on the date of birth of the older, deceased spouse if all the following conditions are true:

A joint return was filed for the tax year in which the spouse died,

A retirement subtraction or taxable Social Security income subtraction was claimed for the year in which the spouse died, and

The surviving spouse has not since remarried. [See RAB 2021-24, The Retirement and Pension Benefits Deduction for a Surviving Spouse .]

A surviving spouse born after 1945 who has reached the age of 67 and has not remarried may elect to take the greater of the Michigan standard deduction or the allowable retirement subtraction based on the date of birth of the older, deceased spouse.

To subtract benefits earned by a deceased spouse, the surviving spouse of a subsection (11) retiree is not required to have taken a retirement or Social Security income subtraction on a joint return in the year in which the spouse died. Moreover, because the subtraction is based on the source of the recipient’s benefits rather than age, the age of the older spouse is not a factor in computing the subtraction. In addition, if the surviving spouse of a subsection (11) retiree has remarried, that surviving spouse is still eligible to deduct retirement and pension benefits under subsection (11).