Bill > SF2284

This bill modifies Minnesota's income tax law by creating an unlimited subtraction for Social Security benefits, effectively eliminating the previous complex calculation method that involved phaseout thresholds, reduced percentages, and maximum subtraction limits. Under the new provision, taxpayers can now subtract their entire Social Security benefits from their taxable income, regardless of their adjusted gross income level. The bill simplifies the existing statute by removing multiple paragraphs that previously established different subtraction rules for married couples filing jointly, single or head-of-household taxpayers, and those filing separate returns. The definition of "Social Security benefits" remains consistent with the Internal Revenue Code's definition. The changes will take effect for taxable years beginning after December 31, 2024, which means taxpayers will first be able to use this new unlimited subtraction when filing their 2025 tax returns.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2284&ssn=0&y=2025