Bill > HF1015

This bill amends Minnesota tax law to provide a full subtraction of Social Security benefits for veterans and surviving spouses, regardless of income level. Currently, Social Security benefits are subject to a complex subtraction method that reduces the tax exemption based on a taxpayer's adjusted gross income and provisional income. The new provision specifically creates a separate, unconditional subtraction for veterans and surviving spouses, defined using the existing legal definition of "veteran" from Minnesota Statutes section 197.447. Under the previous law, taxpayers could only subtract a portion of their Social Security benefits based on income thresholds, with reductions for those earning above certain amounts. The bill eliminates these income-based restrictions for veterans and their surviving spouses, allowing them to fully exclude Social Security benefits from state income tax. The changes will take effect for taxable years beginning after December 31, 2024, providing a tax benefit specifically designed to support veterans and their families by reducing their state tax burden.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1015&ssn=0&y=2025