Note: Compensation from the U.S. Public Health Service is not considered military pay.

• You may subtract Michigan state and city income tax refunds and homestead property tax credit refunds that were included in AGI.
• You may deduct to the extent not deducted in calculating AGI, the following:
  • The total of all contributions made during 2005 by the taxpayer in the tax year to accounts established through the MESP. The deduction may not exceed $5,000 for a single return or $10,000 for a joint return per tax year. A deduction is not allowed for contributions to an MESP account if a withdrawal has been made from that account in any tax year. There are numerous education savings accounts available from other states and investment companies, but Michigan only allows a tax deduction for contributions to accounts established through MESP.

• Miscellaneous subtractions include:
  • Contributions to national or Michigan political parties or candidates. The maximum deduction is $50 on a single return and $100 on a joint return.
  • Benefits from a discriminatory self-insured medical expense reimbursement plan, to the extent these reimbursements are included in AGI.
  • Proceeds and prizes included in AGI won in State of Michigan regulated bingo, raffle or charity games.
  • Gross income included in AGI from Michigan gas and oil royalty interest or working interest
  • The amount included in AGI as income to the purchaser because the MET contract was terminated.
  • Any part of a qualified withdrawal from an MESP account included in AGI.
  • The amount of a distribution from individual retirement accounts that qualify under section 408 of the Internal Revenue Code if the distribution is used to pay qualified higher education expenses (tuition, books, fees, etc.) at a post-secondary educational institution.
  • Holocaust victim payments.
  • Distribution from a pension or retirement plan that is contributed to a qualifying charitable organization. To qualify, you must make the payment to the charity within 60 days of receiving the distribution, and reduce the amount of the contribution by any pension subtraction taken and two times the total amount of credits claimed for a public contribution credit, homeless shelter/food bank credit and the community foundation credit.

Back