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SF2284 (Legislative Session 94 (2025-2026))

Unlimited Social Security subtraction provision

Related bill: HF1000

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025SenateFloorActionIntroduction and first reading
March 05, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new maximum subtraction rule for married taxpayers filing separately."
      ],
      "removed": [],
      "summary": "The bill focuses on amending the provision in Minnesota Statutes section 290.0132, specifically subdivision 26, related to the subtraction of Social Security benefits from taxable income.",
      "modified": [
        "Adjustments to the phaseout threshold and maximum subtraction calculations are introduced."
      ]
    },
    "citation": "290.0132"
  }
]

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