Bill > S0033

This bill modifies Rhode Island's personal income tax law to allow individuals to subtract $20,000 of their Social Security income from their federal adjusted gross income for tax years beginning on or after January 1, 2025. Previously, the state had a more complex Social Security income modification that varied based on the taxpayer's age and income level, with different thresholds for single and married filers. The new provision simplifies the tax treatment of Social Security income by providing a flat $20,000 subtraction for all eligible taxpayers, regardless of their filing status or total income. This change is part of a broader trend of making the state's tax code more friendly to retirees and seniors by reducing their tax burden. The bill will take effect immediately upon its passage, meaning taxpayers can apply this new deduction when filing their 2025 tax returns.

Budget and Finance

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