This pension deduction worksheet does not correctly handle the new police, fire department, state police or corrections officer deduction.  These pensions have now been determined to be fully deductible.   There has to be a way to separately identify the police/fire pensions from other pensions.  Currently the program does not allow direct input on MI Form 4884.  MI instructions state to complete "Worksheet 2 and Section A" of Form 4884 and take the larger deduction.  No way to do this without separating the pensions that go on Line 3 and Line 6 of the worksheet and Line 12 and Line 14 of Section A.  We need to be able to code the pensions correctly in the program or allow input on Form 4884.  This is how I'm reading the instructions and could be totally off-base but I cannot see any way to handle the pension differences without correcting the software.

My previous post, I think, is correct in how the police/EMT pension deduction should work. Subtraction would be figured in Section A, Form 4884.  I suspect that there needs to be a new code for the police subtraction rather than using the "G" for government.  That subtraction is figured in Section D on Form 4884.  MI is in the process of reverting to the previous method of not taxing a large amount of pension dollars ($120K+ MFJ and $61K single).  They are spreading this change out over 4 years.  MI does allow more than one kind of subtraction - currently military and railroad pensions are not taxed.  And, yes, MI is very convoluted in anything they do with taxes.  Their website leaves a lot to be desired. Intuit has obviously dropped the ball and any MI return with police or EMT pensions will have to be held until Intuit corrects the software. Does anyone have any info on when the software correction will occur?

In the Federal return on the 1099-R Federal worksheet, use line 16-1, state distribution and state use code.  Put a "G" in the state use code. In the MI return, Form 4884, Part 4, Section A, will automatically do the calculation for the maximum deduction from any taxable pension.

I have an HP LaserJet that also has the capability to print two sided.  In the MicroSoft settings for printers, I pick my printer and "manage".  There is an option for "printer preferences" and there I can select to print one or two sided.  Hope this helps.

Yes, it really bugs me.  It's a program bug that ProSeries doesn't seem to want to fix.  Why not?   I tend to be proud of the product that I produce for my client's and expect the same from my vendors.  I once dealt with a contractor who said "why fix it, you can't see it from the street".  ProSeries seems to have the same attitude.

I agree that an IRA distribution is not a pension, however, it is retirement income.  It makes more sense to leave it where it has always been on the Summary Report as part of pension income than to move it to the line that reports miscellaneous income.  If you zoom on the entry, you will not see the IRA.  

I'm thinking the taxability of the home is separate from the Sch A medical expense deduction.  If he doesn't qualify to exclude the gain because he did not live in the home for two of the last five years, then all the $23,000 would be taxable.  However, even if the gain is not taxable, he didn't get to keep the money.  All the $23,000 went to WI, so does he have a $23,000 medical expense?