Michigan Administrative Code
Department - Treasury
Customer Service Bureau
Income Tax
Section R. 206.9 - Interest income and gains from sale or disposal of United States obligations exempted from state taxation; treatment; interest on federal income tax refunds
Current through Vol. 24-04, March 15, 2024
Rule 9.
(1) Interest income and gains from the sale or disposal of United States obligations, which are exempted from state taxation by the United States Constitution, treaties, and statutes, are deductible from adjusted gross income. The deduction for such income shall be reduced by any interest on indebtedness incurred in carrying the United States obligation and by any other expense, including amortized bond premiums, deducted from gross income to arrive at adjusted gross income. The income from the following United States obligations is not subject to state income tax:
(2) Interest on federal income tax refunds is not exempted from state taxation and shall not be claimed as a deduction.