Bill > SF22

This bill simplifies Minnesota's tax code by eliminating the complex rules around Social Security benefit subtraction and replacing them with a straightforward provision that allows taxpayers to fully subtract their Social Security benefits from their state taxable income, without any income-based limitations or phaseouts. Previously, the law had intricate calculations that reduced the Social Security subtraction based on a taxpayer's adjusted gross income, with different thresholds for married couples filing jointly, single filers, and those filing separately, and included complex formulas for calculating a "provisional income" and maximum subtraction amounts. The new law removes all of these restrictions, essentially creating an unlimited Social Security subtraction for all taxpayers. This change will make tax filing easier for Minnesota residents who receive Social Security benefits and potentially provide tax relief, especially for retirees. The bill will take effect for taxable years beginning after December 31, 2024, giving taxpayers and tax authorities time to prepare for the new, simplified approach.