Bill > SF2102

This bill modifies Minnesota's working family credit tax provision by removing certain restrictions related to Individual Taxpayer Identification Numbers (ITINs) and adjusting eligibility criteria. Specifically, the bill eliminates language that previously prevented certain taxpayers from claiming the credit, particularly those with ITINs. The bill maintains the existing structure of the working family credit, which allows eligible Minnesota residents a tax credit based on a percentage of earned income, with additional credits for taxpayers with qualifying older children (defined as qualifying children who are at least 18 years old). The credit remains calculated at four percent of the first $8,750 of earned income, with potential increases ranging from $925 to $2,500 depending on the number of qualifying older children. The bill also removes a previous provision (section 32(m) of the Internal Revenue Code) that may have limited credit eligibility. These changes will become effective for taxable years beginning after December 31, 2024, which means taxpayers will first be able to apply these new rules when filing taxes for the 2025 tax year.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2102&ssn=0&y=2025