HF167

HF167 (Legislative Session 94 (2025-2026))

Unlimited Social Security individual income tax subtraction allowed, individual income tax rates modified, and property tax refunds modified.

AI Generated Summary

The legislative bill, H.F. No., mainly focuses on modifying how Social Security benefits are taxed and adjusting individual income and property tax refunds in Minnesota. Simplified, the bill proposes the following key changes:

Social Security Subtraction: It allows a subtraction (deduction from taxable income) for Social Security benefits. A taxpayer can choose between a simplified subtraction based on their income level or an alternate subtraction, which may allow for a different deduction amount based on specific income thresholds and calculations. These configurations aim to adjust the tax burden based on income, benefitting those with lower adjusted gross incomes more.
Adjustment of Income Thresholds: The bill defines income thresholds that determine how much of a taxpayer’s Social Security benefits can be subtracted from their taxable income. The thresholds vary based on the taxpayer’s filing status (e.g., married filing jointly, single, head of household).
Changes to Tax Rates and Refunds: The proposal includes modifications to the individual income tax rates and property tax refunds, although specific details on the new rates and how refunds will be adjusted are not provided in the summary.
Updating Statutory References: The bill updates several statutory references to align with the new rules for calculating Social Security benefit subtractions and tax adjustments.

Overall, the bill aims to provide tax relief to individuals receiving Social Security benefits, particularly tailoring the benefits to support lower and middle-income taxpayers. The modifications to income tax rates and property tax refunds indicate a broader attempt to adjust the overall tax structure in the state.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 12, 2025	House	Floor	Action	Authors added
February 16, 2025	House	Floor	Action	Author added
March 16, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Clarification of subtraction options based on filing status and income thresholds."
      ],
      "removed": [
        "Unclear if any specific provisions were removed as the text focuses on modification."
      ],
      "summary": "Modifications are made to the existing tax subtractions for Social Security benefits under section 290.0132.",
      "modified": [
        "The calculation method for phaseout thresholds and maximum subtractions has been adjusted."
      ]
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [
        "Potential considerations for changes in individual tax rates, though specifics are not provided in the excerpt."
      ],
      "removed": [
        "No explicit removals are specified in the given text."
      ],
      "summary": "This bill indicates potential modifications to income tax rates under section 290.06.",
      "modified": [
        "Implications for rate adjustments based on overall tax policy adaptation, though specifics are absent in the text."
      ]
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [
        "Changes suggest a potential adjustment or clarification on refund calculations."
      ],
      "removed": [
        "No mention of eliminations within the provided excerpt."
      ],
      "summary": "Modifications to property tax refunds as indicated under section 290A.04.",
      "modified": [
        "Potential updates in the formulas used for calculating property tax refunds."
      ]
    },
    "citation": "290A.04"
  }
]