Bill > HF2081

This bill simplifies the Minnesota state tax treatment of Social Security benefits by replacing the current complex calculation method with an unlimited subtraction. Under the current law, Social Security benefits were subject to a complicated reduction formula based on adjusted gross income and various thresholds, with different calculations for married, single, and head of household filers. The new bill eliminates these complex provisions and instead allows taxpayers to fully subtract their entire Social Security benefits from their state taxable income, regardless of income level. The bill maintains the existing definition of Social Security benefits from the Internal Revenue Code and will take effect for taxable years beginning after December 31, 2024. This change will likely provide significant tax relief for retirees by allowing them to exclude all of their Social Security income from state taxes, potentially reducing the tax burden for many seniors in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2081&ssn=0&y=2025