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State conformity · MI

Michigan — qualified-tips deduction conformity

Explicit conformity — the state has legislated to honor the federal qualified-tips deduction.[1]
Policy state — Last verified2026-05-07Federal cap source

Personalized calculation

What this means for Michigan workers

This state has explicitly legislated or issued DOR guidance to conform to the federal qualified-tips and qualified-overtime above-the-line deductions. The federal AGI reduction flows through to state taxable income.

Last verified: 2026-05-07Michigan DOR / legislation source →

Statute-cited expansion

Federal source

The federal deductions sit at 26 USC §224 (qualified tips) and §225 (qualified overtime). State conformity is keyed to whether the state uses federal AGI (or federal taxable income) as the starting point for state taxable income, and whether the state has affirmatively decoupled from §224 / §225 for state tax purposes.

  • 26 USC §224(b)(1)$25,000 federal qualified-tips cap.
  • 26 USC §225(b)(1)$12,500 single / $25,000 MFJ federal qualified-overtime cap.

Actionable artifact

Next step

  1. Run the decoder with your numbers.

    The decoder shows the federal AGI reduction. Compare against the Michigan state-return path described above. /decode →

  2. Read the Michigan DOR source.

    https://www.michigan.gov/treasury

  3. See all 50 states.

    /state-conformity →