SF2508

Purpose of the Bill

The purpose of this bill is to modify the income thresholds for the child tax credit under Minnesota law. This move aims to benefit taxpayers by expanding the eligibility for a full or partial child tax credit, thus potentially reducing their tax liability.

Main Provisions

• The bill proposes an increase in the income level at which the child tax credit begins to phase out.
• For married taxpayers filing a joint return, the threshold increases from $35,000 to $45,490.
• For all other filers, the threshold is raised from $29,500 to $38,340.

Significant Changes

• This legislation amends the phaseout mechanism for child tax credits by increasing the income limits, allowing more taxpayers to qualify for the full credit before it starts to reduce.
• The phaseout of credits is still based on earned income or adjusted gross income, whichever is higher, but begins at the newly specified income levels.

Relevant Terms

child tax credit, income threshold, tax phaseout, adjusted gross income, earned income, taxpayer, joint return.