The 2024 H&R Block tax software for Michigan made a big mistake in deciding how much private retirement income I can subtract from my AGI. Originally, the tax software asked nothing on the subject and assumed a subtraction of $40k (Tier 2). Starting from information that I found on this site I downloaded form 4884 and the instructions for form 1040 from Michigan.gov. There I found that a taxpayer has a choice of two ways to calculate the subtraction: either the Tier 2 subtraction or the subtraction calculated with Michigan form 4884. At this point, the tax software did not show any form 4884.
I decided to use the tax software to print out a paper copy for filing. When I went to override the amount of subtraction, the software asked me if I wanted to go to the form. I said yes, and form 4884 appeared. At this point I checked the list of forms, and now form 4884 was listed. Since I had to overwrite entries in the form 4884 of the tax software, I will not be able to e-file in Michigan, but I was able to find all of the forms with the tax software needed to print the paper copy for filing.
My reason for posting this is to point out a problem with the H&R Block software and to offer one solution.
Bill Webb
H&R Block problems with Michigan 2024 software
Re: H&R Block problems with Michigan 2024 software
It's still January. Many tax software packages aren't complete until later in the filing season. It would be very surprising if H&RB wouldn't automate what appears to be a common part of the state return.
Re: H&R Block problems with Michigan 2024 software
In the interview section go to STATE tab in the software, there is a page that lists your Retirement or Pension Benefits. (You will need to page through the software until you see this page. This retirement income information was inputted when you filled out the Federal side). On the Retirement or Pension Benefits page you will see a listing of your retirement income. There is a Distribution Type on the left side of the page. Make sure you have selected "Private" for your income (assuming your income was from a private source). This should fix your problem.
Re: H&R Block problems with Michigan 2024 software
State modules are notoriously flawed this early. Programmers spend little time on them until the Federal is up and reasonably stable.FiveK wrote: Wed Jan 29, 2025 7:51 pm It's still January. Many tax software packages aren't complete until later in the filing season. It would be very surprising if H&RB wouldn't automate what appears to be a common part of the state return.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: H&R Block problems with Michigan 2024 software
Thanks. I started a new MI tax return with the HRBlock software and followed your instructions. Your approach worked. Yesterday I talked with two HRBlock customer help persons about my problem, and neither one of them had any idea as to how to fix the problem.. Thanks and much obliged.
Re: H&R Block problems with Michigan 2024 software
The MI pension deduction is now quite complicated, so it’s not surprising that software doesn’t handle it properly. It will be easier in a few years.
BTW, thanks for the heads-up. I just stopped my state deduction since most of my income is pension and IRA, so I don’t expect to owe any tax. I probably wouldn’t have noticed until next year.
One thing I haven’t figured out is that there is something about 401k contributions, which are above the employer matching amount, not being qualified. I haven’t seen any guidance regarding that, so if nothing is forthcoming, I plan to just use the 1099R numbers.
BTW, thanks for the heads-up. I just stopped my state deduction since most of my income is pension and IRA, so I don’t expect to owe any tax. I probably wouldn’t have noticed until next year.
One thing I haven’t figured out is that there is something about 401k contributions, which are above the employer matching amount, not being qualified. I haven’t seen any guidance regarding that, so if nothing is forthcoming, I plan to just use the 1099R numbers.
Re: H&R Block problems with Michigan 2024 software
You're Welcome. Glad I could help.WAW wrote: Fri Jan 31, 2025 10:51 am Thanks. I started a new MI tax return with the HRBlock software and followed your instructions. Your approach worked. Yesterday I talked with two HRBlock customer help persons about my problem, and neither one of them had any idea as to how to fix the problem.. Thanks and much obliged.