LANSING, Mich. — The Senate Finance Committee on Wednesday approved Sen. Jim Runestad’s legislation to help seniors lower their state taxes and keep more of their income.
Senate Bill 467 would amend the Michigan Income Tax Act to increase income deduction amounts for individuals age 67 and older.
“So many of our seniors are living on fixed incomes and tight budgets,” said Runestad, R-White Lake. “This legislation would let seniors keep more of the money they’ve earned and saved for retirement, which will make a real difference for our most vulnerable loved ones.”
Runestad’s bill would increase the amount of income that may be deducted from $20,000 to $25,000 per return for single filers, and from $40,000 to $50,000 per return for joint returns. The change would be retroactive to Jan. 1, 2021.
“Our seniors have faced so much over the last year. But with inflation and rising costs, those on fixed incomes are going to be impacted even more,” Runestad said. “The money that seniors have budgeted for retirement is losing its real-life value, and most seniors are not in a position to go out and pick up a new job or source of income.
“Seniors need our help, and they need it now. I believe we can work together to pass this legislation and make a positive difference in the lives of our seniors.”
SB 467 now advances to the Senate floor for consideration.