The bill amends Minnesota Statutes 2024, section 290.0132, subdivision 26, to allow taxpayers to subtract the full amount of Social Security benefits received from their taxable income, eliminating previous limitations and phaseout thresholds. The existing provisions that defined a simplified subtraction and an alternate subtraction based on adjusted gross income and various thresholds for different filing statuses have been removed. Instead, the new language states that the amount of Social Security benefits received is a straightforward subtraction, simplifying the tax calculation for individuals receiving these benefits.

Additionally, the bill clarifies the definition of "Social Security benefits" in accordance with the Internal Revenue Code and establishes that the changes will take effect for taxable years beginning after December 31, 2024. This legislative change aims to provide greater tax relief to individuals receiving Social Security benefits by removing the complexities associated with income thresholds and reductions.

Statutes affected:
1st Engrossment: 290.0132