Bill > HF1000

This bill proposes to simplify and significantly expand the tax subtraction for Social Security benefits in Minnesota by eliminating the current complex calculation method with multiple thresholds, income limitations, and phaseout provisions. Under the new provision, the entire amount of Social Security benefits received would be fully subtractable from an individual's taxable income, regardless of their income level or filing status. The bill maintains the existing definition of Social Security benefits as defined in section 86(d)(1) of the Internal Revenue Code, which typically includes retirement, disability, and survivors' benefits. The new tax subtraction would become effective for taxable years beginning after December 31, 2024, potentially providing significant tax relief for retirees and Social Security recipients by removing previous income-based restrictions on the subtraction. This change represents a straightforward and more generous approach to treating Social Security income for state tax purposes, making it easier for taxpayers to understand and potentially reducing their overall tax burden.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1000&ssn=0&y=2025