This bill amends Minnesota Statutes 2024, section 290.0132, subdivision 26, to provide an unlimited subtraction for Social Security benefits from individual income tax calculations. The previous provisions that established a phased reduction of the subtraction based on adjusted gross income and specific thresholds for different filing statuses have been removed. Instead, the bill states that the amount of Social Security benefits received will be fully subtracted from taxable income, simplifying the tax treatment 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. It also includes an effective date, stating that the new provisions will apply to taxable years beginning after December 31, 2024. This change aims to provide greater tax relief to individuals receiving Social Security benefits by eliminating the previous income-based reductions.

Statutes affected:
Introduction: 290.0132