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HF760 (Legislative Session 94 (2025-2026))

Unlimited Social Security subtraction allowed.

AI Generated Summary

The bill H.F. No. 760, authored by Robbins, focuses on the taxation of Social Security income in Minnesota. It proposes to amend the existing law to possibly increase the amount of Social Security benefits that can be subtracted from taxable income, therefore potentially reducing the tax burden for individuals receiving these benefits.

Key features of the bill include: - A choice for taxpayers between a simplified subtraction method and an alternate subtraction based on their income levels. - For the simplified method, the subtraction amount is reduced by 10% for each $4,000 (or $2,000 for married filing separately) by which a taxpayer's income exceeds certain thresholds ($100,000 for married filing jointly, $78,000 for single/head of household, and amounts adjusted for married filing separately). - The alternate subtraction method offers a maximum subtraction (e.g., $5,840 for married filing jointly) which decreases by 20% of provisional income that exceeds specified levels. - The term "provisional income" is defined based on federal tax guidelines, including modified adjusted gross income plus half of the Social Security benefits received. - New phaseout threshold amounts and maximum subtraction amounts are adjusted annually by specific statutory guidelines to keep up with inflation or other fiscal changes.

In simpler terms, the bill aims to adjust how Social Security income is taxed, providing more favorable tax subtraction options which might lead to lower taxes for those receiving Social Security, depending on their overall income and filing status.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new methodology for calculating the subtraction allowance for Social Security benefits."
      ],
      "removed": [
        "Previous income thresholds for phaseout calculations."
      ],
      "summary": "This bill modifies the subtraction rules for Social Security benefits under section 290.0132.",
      "modified": [
        "Adjusted phaseout threshold and subtraction amounts based on filing status and income levels."
      ]
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 270C.22 for adjustment of threshold amounts.",
      "modified": [
        "Specifies adjustment rules for phaseout amounts and maximum subtractions based on section 270C.22."
      ]
    },
    "citation": "270C.22"
  }
]

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