I think there are two issues with MI pension for police and firefighters. First these pensions are totally tax free regardless of amount but the Forms issues by Michigan do not address this issue even though their website state that Form 4884 is updated. The instructions talk about it but there is no direction as to what line you enter the subtraction. Secondly, due to about software companies believe the form calculation is correct since there is no direction from MI because MI did not change the Form!