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HF1015 (Legislative Session 94 (2025-2026))

Social Security benefits for veterans and surviving spouses provided a full subtraction.

Related bill: SF1159

AI Generated Summary

House File No. 1015, authored by Perryman, is a legislative bill from Minnesota that focuses on altering the tax treatment of Social Security benefits for veterans and their surviving spouses. The main goal of this bill is to fully exempt the Social Security benefits that veterans and their surviving spouses receive from state income taxation.

Here are the key points and changes proposed in this bill:

  1. Amendment to Existing Tax Law: The bill proposes to amend Minnesota Statutes 2024, section 290.0132, subdivision 26, specifying how Social Security benefits are handled concerning state taxes.

  2. Tax Subtraction for Veterans and Surviving Spouses: A new provision (paragraph k) will be added, stating that the full amount of Social Security benefits received by a veteran or the surviving spouse of a veteran shall not be considered taxable income (full subtraction).

  3. Definitions and Threshold Adjustments:

    • The amendment retains the existing framework for non-veterans, where the subtraction of Social Security benefits from taxable income depends on various factors such as filing status, gross income, and phased thresholds.
    • For other taxpayers, the simplified subtraction is calculated based on adjusted gross income, with different thresholds specified for married filing jointly, single, or head of household taxpayers, and married filing separately.

  4. Provisional Income Calculation: For determining tax subtraction, provisional income includes modified adjusted gross income along with half of the taxable Social Security benefits.

  5. Adjustments and Rounding: The commissioner has the authority to adjust phaseout threshold amounts annually. Any resulting adjustments are rounded to the nearest $10.

  6. Emphasis on Veterans: The bill places a significant focus on easing the tax burden for veterans and their spouses, making it clear that their Social Security benefits should be entirely excluded from the calculation of state taxable income.

This bill was initially read in the House and consequently referred to the Committee on Taxes for further evaluation. The changes aim to provide financial relief to veterans and their surviving spouses, recognizing their service and the unique challenges they may face.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provides a full subtraction of taxable Social Security benefits for veterans and surviving spouses."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This bill modifies the calculation of taxable Social Security benefits, providing full subtraction for veterans and surviving spouses under section 290.0132.",
      "modified": [
        "Adjusts phaseout threshold amounts and describes alternate subtraction formulas."
      ]
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [
        "Adjustments described are based on statutory requirements for the year 2023."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "The bill references the method for adjusting phaseout thresholds for taxable years under section 270C.22.",
      "modified": [
        "Provides that adjustments must be rounded to the nearest $10 amount."
      ]
    },
    "citation": "270C.22"
  },
  {
    "analysis": {
      "added": [
        "Includes veterans and surviving spouses in the subtraction qualification."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "Defines 'veteran' for the purposes of the full subtraction of Social Security benefits under section 290.0132.",
      "modified": [
        "Clarifies eligibility for full benefit subtraction."
      ]
    },
    "citation": "197.447"
  }
]

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