Bill > HF236

This bill modifies Minnesota's tax code to provide a full subtraction of taxable Social Security benefits for veterans and their surviving spouses, effective for taxable years beginning after December 31, 2024. Currently, the law allows taxpayers to subtract Social Security benefits using either a simplified or alternate method, with reductions based on adjusted gross income and phaseout thresholds. The new provision creates a specific exemption for veterans, allowing them to fully subtract their Social Security benefits without the previous income-based limitations. The bill defines a "veteran" using the definition in section 197.447 of Minnesota statutes. For other taxpayers, the existing complex calculation remains in place, which reduces the Social Security benefit subtraction based on income levels and filing status (such as married filing jointly, single, or head of household), with different thresholds and reduction percentages for each category. The changes aim to provide additional tax relief specifically for veterans and their surviving spouses by eliminating income-based restrictions on Social Security benefit subtractions.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0236&ssn=0&y=2025