Bill > SF1631

This bill modifies Minnesota's tax law to provide an unlimited subtraction for Social Security benefits on state income tax returns, effectively removing previous restrictions and phaseout provisions that limited the amount taxpayers could subtract from their taxable income. Under the current law, the Social Security benefits subtraction was subject to complex calculations based on adjusted gross income, with different thresholds for married couples filing jointly, single taxpayers, and those filing separately, and included reductions based on "provisional income." The new bill simplifies this by allowing taxpayers to subtract the full amount of their Social Security benefits, as defined by the Internal Revenue Code, without any income-based limitations. The bill defines Social Security benefits using the same definition found in federal tax law and will take effect for taxable years beginning after December 31, 2024. This change means that regardless of a taxpayer's income level, they can now deduct their entire Social Security benefits from their Minnesota state taxable income, which could provide significant tax relief for retirees and Social Security recipients.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1631&ssn=0&y=2025