SF2284

This bill proposes an amendment to Minnesota tax law regarding the treatment of Social Security benefits for individual income tax purposes. Specifically, it aims to allow an unlimited subtraction of taxable Social Security benefits from state taxable income. The bill modifies Minnesota Statutes 2024, section 290.0132, subdivision 26 by eliminating current income-based phaseouts and limitations on the amount of Social Security benefits that taxpayers can subtract from their taxable income.

Key Changes: - Removes the existing limits and phaseout thresholds on the subtraction of taxable Social Security benefits. - Provides that all Social Security benefits received by a taxpayer will be fully subtracted from Minnesota taxable income. - Maintains the definition of Social Security benefits as per section 86(d)(1) of the Internal Revenue Code.

Impact: - If enacted, it would effectively eliminate state income tax on Social Security benefits for all Minnesota taxpayers, regardless of income level.