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Are Canadain RIF Periodic Pension Payments Eligible For Michigan Retirement And Pension Subtraction

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(@Anonymous)
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[#71]

Michigan’s Public Act 38 of 2011 started taxing pensions in Jan 2012. For folks born in 1952 – filing jointly – a maximum of $40,000 was permitted as a subtraction from taxation. I am a dual citizen (USA & Canada), & full-time resident of USA. I receive periodic pension payments from my Canadian RRSP (which I transferred to a RIF at age 59 1/2). Michigan allows distributions from a Traditional IRA to be subtracted. The US/Canada Tax Convention states that US IRA’s and Canadian RRSP’s should be treated the same. Shouldn’t Michigan allow me to subtract my RIF pension?


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