Bill > HF760

This bill proposes to simplify the tax treatment of Social Security benefits in Minnesota by eliminating the current complex calculation method and replacing it with an unlimited subtraction for Social Security benefits. Under the current law, Social Security benefits were subject to a complicated reduction calculation based on adjusted gross income, with different thresholds for various filing statuses and maximum subtraction limits. The new bill removes all of these complex provisions and replaces them with a straightforward rule that allows taxpayers to fully subtract their Social Security benefits from their taxable income, regardless of their income level or filing status. This change would make it easier for taxpayers to understand and calculate their state income tax deductions for Social Security benefits and potentially provide greater tax relief for retirees. The bill would become effective for taxable years beginning after December 31, 2024, giving taxpayers and tax authorities time to prepare for the new, simpler subtraction method.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0760&ssn=0&y=2025