Michigan Income Tax Deductions

by Sue-Lynn Carty ; Updated July 27, 2017
Michigan offeres various deductions for its state income taxes.

Although the state of Michigan charges taxes on income earned in the state, it does offer various income tax deductions. Michigan income tax deductions lower your adjusted gross income, which could help decrease the amount of state taxes you owe.

Exemption Deductions

You can take a $3,500 personal exemption deduction from your Michigan income taxes. The state also allows a $2,200 exemption for those over age 65 as well as those who are permanently disabled. For Michigan residents who received unemployment payments for more than half of their adjusted gross income, there is a $2,200 deduction.

Dependent Deductions

Michigan tax payers can deduct $600 for each dependent child under the age of 18. The state also allows a $3,500 dependency exemption. You can also take an additional $1,500 in a personal exemption if someone else can claim you as a dependent on his taxes as long as your adjusted gross income is more than $1,500.

Additional Deductions

Michigan residents receiving payment from a private pension can take a maximum deduction of $43,440 from their state income taxes. Senior citizens can deduct up to $9,690 in capital gains income, and dividend and interest payments. Disabled veterans can deduct an additional $250 from their Michigan income taxes. You can take a maximum of a $5,000 if you contribute to a Michigan Education Savings Program.

About the Author

Sue-Lynn Carty has over five years experience as both a freelance writer and editor, and her work has appeared on the websites Work.com and LoveToKnow. Carty holds a Bachelor of Arts degree in business administration, with an emphasis on financial management, from Davenport University.

Photo Credits

  • A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com