Bill > HF2502

This bill modifies Minnesota's child credit tax provisions to address the marriage penalty, which occurs when married couples are taxed at a higher rate compared to single filers. Specifically, the bill increases the phaseout thresholds for the child credit: for married couples filing jointly, the threshold rises from $35,000 to $63,900, and for other filers, it increases from $29,500 to $31,950. The changes mean that married couples can now earn more income before their child tax credit begins to decrease, effectively reducing the tax disadvantage historically experienced by married couples. Additionally, the bill adjusts the timeline for annual inflation adjustments to the credit amount and phaseout thresholds, with the commissioner of revenue now required to make these adjustments based on the 2025 tax year. The changes will take effect for taxable years beginning after December 31, 2024, providing tax relief and more equitable treatment for married taxpayers with children.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2502&ssn=0&y=2025