House committee considers bipartisan pension tax relief for surviving spouses

first_img Categories: Glenn News 06Mar House committee considers bipartisan pension tax relief for surviving spouses Rep. Glenn cosponsors Democratic lawmaker’s billLansing — Surviving spouses will not be subject to a pension tax increase as a result of the loss of their loved one under bipartisan legislation considered Wednesday in the House Tax Policy Committee.State Rep. Gary Glenn, R-Midland, an original co-sponsor of Rep. Jim Townsend’s House Bill 4124, said the bipartisan effort to update Michigan’s pension tax exemption so widowed spouses remain eligible demonstrated the issue’s importance.“Surely this is something everyone can agree on, that a grieving spouse shouldn’t be further burdened with a tax increase triggered by the death of their loved one,” Rep. Glenn said. “I did not support the new pension tax to begin with, but until we can repeal it in full, this is at least a step back in the right direction.”Under current law, the age of the oldest spouse determines the tax category that applies to the pension and retirement benefits of both spouses. If the older spouse passes away first, the surviving spouse could experience a tax increase on retirement income.The legislation ensures that surviving spouses continue to receive the same tax rate, limitations and restrictions so long as they have filed a joint tax return in the past with their spouse and have not remarried during the tax year in which they file.During his presentation, Townsend, D-Royal Oak, thanked Rep. Glenn for cosponsoring the legislation and said he is proud to have Glenn’s support.The bill is expected to be approved by the committee next week and go to the full House for consideration.last_img read more