new text begin [290.0693] PROPERTY TAX REFUND CREDIT.
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Subd. 3.

Income.

(a) "Income" means deleted text beginthe sum of the following:(1)deleted text end federal adjusted
gross income as defined in the Internal Revenue Codedeleted text begin; anddeleted text endnew text begin, less the subtractions allowed
in paragraph (b).
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deleted text begin (2) the sum of the following amounts to the extent not included in clause (1):
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deleted text begin (i) all nontaxable income;
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deleted text begin (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
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deleted text begin (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
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deleted text begin (iv) cash public assistance and relief;
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deleted text begin (v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
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deleted text begin (vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
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deleted text begin (vii) workers' compensation;
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deleted text begin (viii) nontaxable strike benefits;
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deleted text begin (ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
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deleted text begin (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
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deleted text begin (xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
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deleted text begin (xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
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deleted text begin (xiii) nontaxable scholarship or fellowship grants;
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deleted text begin (xiv) alimony received to the extent not included in the recipient's income;
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deleted text begin (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
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deleted text begin (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
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deleted text begin (xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
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deleted text begin In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
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deleted text begin (b) "Income" does not include:
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deleted text begin (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
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deleted text begin (2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
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deleted text begin (3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
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deleted text begin (4) surplus food or other relief in kind supplied by a governmental agency;
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deleted text begin (5) relief granted under this chapter;
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deleted text begin (6) child support payments received under a temporary or final decree of dissolution or
legal separation;
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deleted text begin (7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;
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deleted text begin (8) alimony paid; or
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deleted text begin (9) veterans disability compensation paid under title 38 of the United States Code.
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deleted text begin (c)deleted text endnew text begin (b)new text end The sum of the following amounts may be subtracted from income:

(1) for the deleted text beginclaimant'sdeleted text endnew text begin taxpayer'snew text end first dependent, the exemption amount multiplied by
1.4;

(2) for the deleted text beginclaimant'sdeleted text endnew text begin taxpayer'snew text end second dependent, the exemption amount multiplied by
1.3;

(3) for the deleted text beginclaimant'sdeleted text endnew text begin taxpayer'snew text end third dependent, the exemption amount multiplied by
1.2;

(4) for the deleted text beginclaimant'sdeleted text endnew text begin taxpayer'snew text end fourth dependent, the exemption amount multiplied by
1.1;

(5) for the deleted text beginclaimant'sdeleted text endnew text begin taxpayer'snew text end fifth dependent, the exemption amount; and

(6) if the deleted text beginclaimantdeleted text endnew text begin taxpayernew text end or deleted text beginclaimant'sdeleted text endnew text begin taxpayer's