Michigan state tax basis is the Federal Adjusted Gross Income (AGI).

Interest/Divident Income: Exempts U.S. government bonds. Persons age 65 or over may deduct up to $8,828/person in interest, dividends, and capital gains.

Rent Income: Same as federal. Michigan allocation and apportionment provisions.

Capital Gain: See 'Interest/Dividend'.

Unemployment Income: Same as federal.

Social Security Benefits: All social security income is exempt from state taxes.

State Bond Interest: Taxable except for Michigan obligations

Health Savings Accounts: Same as federal.

Disability: Same as federal.

Lottery: Regulated Michigan bingo, raffle and charity games winnings exempt. Lottery winnings are taxable.

Federal Income Tax: Not deductible

Other Taxes: Deductions for elderly and disabled (based on federal credit), amounts claimed for federal work opportunities, clinical testing, and research credits, income of residents of a Renaissance zone, political contributions, education trust contracts, contributions to a Michigan Education Savings Program, income from Michigan gas and oil interests, IRA distributions used to pay qualified higher education expenses, and taxable pension distributions donated to charity. No deduction for self-employment tax from federal return.

Check other state tax links below.