Michigan Income Tax Exemption for a Disabled Veteran

Section 206.30(3)(b) allows a single additional exemption for each taxpayer and every dependent of the taxpayer who is a qualified disabled veteran. The statutory figure is $250, set for tax years beginning after 2007, and subsection (7) indexes it to the consumer price index from the 1998-99 state fiscal year, rounded to the nearest $100. The Department of Treasury publishes the result: for the 2025 tax year it is $500, alongside a $5,800 personal exemption and a $3,400 special exemption. At Michigan's flat rate the exemption is worth around twenty dollars of tax. What makes it worth an entry is who can claim it, because the definitions in this subdivision are wider than anywhere else in Michigan law. A qualified disabled veteran is a veteran with a service-connected disability, and a service-connected disability is one incurred or aggravated in the line of duty as described in 38 USC 101(16). No percentage appears. A veteran holding a 0 percent service-connected rating, which VA grants where a condition is service connected but not currently compensable, is a qualified disabled veteran for this exemption. Nothing else in the Michigan file reaches that far down. The discharge standard is also the widest in the Michigan code. "Veteran" for this subdivision means an individual who served in the active military, naval, marine, coast guard, or air service and who was discharged or released with an honorable or general discharge. A general discharge is named in the text rather than being left to an argument about whether "under honorable conditions" includes it. It can be claimed for a dependent. Where a taxpayer's dependent is a qualified disabled veteran, the exemption is available, and where that dependent files their own return the taxpayer or the dependent may claim it but not both. A household supporting a disabled adult child who served can claim it on the parents' return. This is a separate exemption from the $1,800 additional exemption in 206.30(3)(a) for a taxpayer or dependent who is deaf, a paraplegic, quadriplegic or hemiplegic, blind, or totally and permanently disabled as defined in section 522. A disabled veteran who is also within that subdivision may qualify for both, since they are separate paragraphs, each granting "a single additional exemption".