Bill > SF1159

This bill amends Minnesota's tax law to provide a full subtraction of taxable Social Security benefits for veterans and surviving spouses, regardless of their income level. Currently, Social Security benefits are subject to a complicated subtraction method that reduces the tax benefit based on a taxpayer's adjusted gross income and provisional income. The new provision creates a special exemption for veterans and surviving spouses, allowing them to fully subtract their Social Security benefits from their taxable income. A "veteran" is defined according to the existing definition in Minnesota Statutes section 197.447. The bill specifies that this new tax treatment will take effect for taxable years beginning after December 31, 2024, which means it will first apply to the 2025 tax year. This change aims to provide additional financial relief to veterans and their surviving spouses by eliminating state income tax on their Social Security benefits, potentially making Minnesota more financially attractive to veterans and recognizing their service.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1159&ssn=0&y=2025