Bill > SF235

This bill proposes to simplify and expand the tax deduction for Social Security benefits in Minnesota by removing the current complex calculation method with multiple thresholds, income reductions, and maximum subtraction limits, and instead allowing taxpayers to subtract the full amount of their Social Security benefits from their taxable income. The current law included detailed provisions that reduced the subtraction based on adjusted gross income and filing status, with different thresholds for married couples filing jointly, single filers, and married individuals filing separately. These intricate rules would be replaced with a straightforward provision that allows individuals to subtract their entire Social Security benefits amount from their taxable income. The bill specifies that this new, unlimited subtraction will be effective for taxable years beginning after December 31, 2024, which means taxpayers will be able to use this simpler method when filing their 2025 tax returns. By removing the previous complex calculation method, the bill aims to make the tax treatment of Social Security benefits more straightforward and potentially more beneficial for Minnesota taxpayers.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0235&ssn=0&y=2025