Bill > SF3174

This bill establishes a public pension benefit subtraction for Minnesota individual income taxes. The key provisions are: 1. It amends the existing Social Security benefits subtraction to remove the income-based phaseout, allowing for a full subtraction of Social Security benefits received. 2. It creates a new public pension income subtraction, which allows for a federal exclusion of up to 100% of qualified public pension benefits for taxpayers with lower provisional incomes, and a partial exclusion for those with higher incomes. There is also a state exclusion of up to $5,450 for joint filers ($4,260 for other filers) that phases out as provisional income increases. 3. It updates the definition of "alternative minimum taxable income" to include the new public pension income subtraction. All these changes are effective for tax years beginning after December 31, 2022.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3174&ssn=0&y=2023