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SF2469 (Legislative Session 94 (2025-2026))

Certain charitable contributions itemized deduction exclusion modifications

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the current tax laws in Minnesota, specifically concerning individual income tax deductions. It seeks to change how certain itemized deductions for taxpayers are calculated, especially focusing on deductions related to charitable contributions.

Main Provisions

  • Itemized Deductions: The bill outlines a reduction in itemized deductions for taxpayers whose adjusted gross income exceeds $220,650. The deductions are reduced by the smaller of two calculations: a percentage of the income over specified thresholds or a set percentage of total itemized deductions.
  • Exclusion of Charitable Contributions: The bill makes significant modifications by excluding charitable contributions from being considered as an itemized deduction for taxpayers exceeding certain income levels.
  • Inflation Adjustments: Adjustments for inflation are required for the income thresholds above which itemized deductions are reduced. These adjustments will begin after December 31, 2023, and will be rounded down to the nearest $50 increment.
  • Married Individuals Filing Separately: For married individuals filing separately, the thresholds for deduction reductions will be half of the amounts set for those filing jointly.

Significant Changes to Existing Law

  • This bill amends the current statute by particularly excluding charitable contributions from itemized deductions for taxpayers with an income over a certain threshold.
  • It introduces a mechanism for annual inflation adjustments to ensure that threshold amounts keep pace with economic changes.

Relevant Terms

  • Itemized Deductions
  • Adjusted Gross Income
  • Charitable Contributions
  • Inflation Adjustment
  • Married Filing Separately

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Language excluding deductions for charitable contributions from the itemized deductions calculation."
      ],
      "removed": [],
      "summary": "This bill amends section 290.0122, subdivision 2 of the Minnesota Statutes, modifying how itemized deductions are calculated for taxpayers with specific income thresholds.",
      "modified": [
        "Adjusted gross income thresholds for deduction reductions."
      ]
    },
    "citation": "290.0122"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced for the method of inflating adjustment of income threshold amounts.",
      "modified": []
    },
    "citation": "270C.22"
  }
]

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