In the Michigan individual tax return, the taxpayer is not eligible to e-file the return if they are claiming the dividend/interest/capital gain deduction on Schedule 1 line 28 and both of these things are true:
- they are also claiming the standard deduction on Schedule 1 line 25 or 26, and
- they have checked the check box below line 28 that states "Check this box is you are the unremarried surviving spouse claiming a dividend, interest or capital gains deduction for someone born prior to 1946 who was at least age 65 at the time of death."
In most cases, a taxpayer who is eligible to claim either the Tier 2 or Tier 3 Michigan Standard Deduction is not also able to claim the dividend/interest/capital gain deduction, however if the taxpayer is both (a) the surviving spouse of a decedent born prior to 1946 who died after reaching age 65, and (b) has not remarried, then they can claim either the Tier 2 or 3 standard deduction, as appropriate, as well as the dividend/interest/capital gain deduction. However, the state doesn't allow such a return to be electronically filed but must be paper filed.
Additional Information:
Michigan DOT: Treatment of Retirement Income Under Public Act 4 of 2023