This bill amends Minnesota Statutes 2024, section 290.0132, subdivision 26, to phase out the taxation of Social Security income for individual taxpayers. The new provisions allow for a subtraction from taxable Social Security benefits, with the amount of the subtraction increasing over time. Specifically, the bill introduces a "first subtraction" and a "second alternate subtraction," with the latter gradually increasing from 10% of taxable Social Security benefits for the years 2025-2026 to 100% by 2035. The bill also outlines specific thresholds for adjusted gross income that will affect the amount of subtraction allowed.

In addition to the new subtractions, the bill deletes certain existing language and modifies the structure of the provisions to clarify the calculation of the subtraction amounts. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to reduce the tax burden on individuals receiving Social Security benefits, thereby providing financial relief to taxpayers over the coming years.

Statutes affected:
Introduction: 290.0132