Could Tax On Pensions Send Seniors Out Of State?
DETROIT (WWJ) – State lawmakers and others gathered in Detroit at a town hall meeting Monday to talk with seniors about state tax law changes on their pensions.
WWJ’s Pat Sweeting reports that a retroactive change in Michigan law requiring retirees born after 1946 to pay taxes on their pension income, may have some thinking about moving to a state where that is not a concern.
Mitch Bean co-founder of Great Lakes Economic Consulting says moving out-of-state even though your pension income was earned in Michigan could free you of that obligation.
“So for example … if I were to move here to Florida for example, I would not be subject to Michigan income tax,” said Bean.
Michigan retirees hoping to keep all the pension they worked years to earn would first need to research which states do not tax such income.