Bill > S2366

This bill proposes to amend Rhode Island's personal income tax law to allow individuals to subtract $25,000 of their Social Security income from their federal adjusted gross income when calculating their state income tax, starting with tax years beginning on or after January 1, 2026. Federal adjusted gross income (AGI) is the starting point for calculating state income tax, and this change would effectively reduce the taxable income for many Rhode Island residents who receive Social Security benefits. This modification is being added to a section of law that already outlines various adjustments, both increasing and decreasing, that can be made to federal AGI to determine Rhode Island income, and it specifically expands upon existing provisions that allow for certain amounts of Social Security income to be subtracted from federal AGI for tax years prior to 2026, with income limitations and age requirements. The bill also states that it will take effect immediately upon its passage.

Budget and Finance

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