Bill > S2365

This bill, effective upon passage, amends Rhode Island's personal income tax law by increasing the federal adjusted gross income (AGI) thresholds for modifying taxable Social Security income, meaning more individuals will be able to subtract these benefits from their state taxable income. Specifically, for tax years beginning on or after January 1, 2026, the AGI limit for unmarried individuals, heads of household, or married individuals filing separately to subtract Social Security benefits will rise from $80,000 to $140,000, and for married couples filing jointly or qualifying widow(er)s, it will increase from $100,000 to $180,000. The bill also adjusts references to federal AGI concerning modifications for taxable retirement income from certain pension plans or annuities, ensuring consistency with these changes. Federal adjusted gross income (AGI) is a taxpayer's gross income minus certain deductions, and modifications are adjustments made to this figure to arrive at Rhode Island taxable income.

Budget and Finance

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