This 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 bill establishes 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" by referencing the relevant section of the Internal Revenue Code. The changes will take effect for taxable years beginning after December 31, 2024, providing taxpayers with a more favorable tax treatment regarding their Social Security income.

Statutes affected:
Introduction: 290.0132
1st Engrossment: 290.0132