Bill > HF100

This bill proposes to simplify and expand the income tax subtraction for Social Security benefits in Minnesota by eliminating the current complex calculation method with multiple thresholds and reductions, and instead allowing taxpayers to subtract the full amount of their taxable Social Security benefits from their state income taxes. Under the current law, the subtraction was subject to various income-based reductions and maximum limits depending on filing status, which are now being completely removed. The bill defines Social Security benefits using the federal Internal Revenue Code definition and will take effect for taxable years beginning after December 31, 2024. By removing the previous income-based limitations and phaseout thresholds, this change will provide a more straightforward tax benefit for Minnesota seniors and retirees receiving Social Security income, potentially resulting in lower state tax liability for these individuals.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0100&ssn=0&y=2025