Bill > SF2011

This bill simplifies the Minnesota state tax deduction for Social Security benefits by eliminating the previous complex calculation method that involved phaseout thresholds, reduced subtraction percentages, and maximum subtraction limits. Under the new provision, taxpayers will be able to subtract their entire taxable Social Security benefits from their state income tax calculation, regardless of their income level. The bill defines Social Security benefits using the same definition found in the Internal Revenue Code (section 86(d)(1)), which typically includes retirement, disability, and survivors' benefits. This change will make the tax deduction more straightforward and potentially more beneficial for many Minnesota taxpayers, particularly retirees. The new provision will take effect for taxable years beginning after December 31, 2024, giving taxpayers and tax authorities time to prepare for the updated subtraction method.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2011&ssn=0&y=2025