Bill > HF828

This bill removes the previous complex formula for calculating Social Security income tax subtraction and replaces it with a simple, unlimited subtraction for Social Security benefits. Under the current law, there were detailed provisions that reduced the subtraction based on a taxpayer's adjusted gross income and applied different thresholds for married, single, and head of household filers, with maximum subtraction amounts and gradual reductions. The new bill eliminates all those complicated calculations and instead allows taxpayers to fully subtract their entire Social Security benefits from their taxable income. The bill defines Social Security benefits using the same definition found in the Internal Revenue Code, ensuring consistency with federal tax guidelines. The changes will take effect for taxable years beginning after December 31, 2024, which means taxpayers will first be able to use this simplified, unlimited subtraction when filing their 2025 tax returns.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0828&ssn=0&y=2025