This bill amends Minnesota Statutes 2024, section 290.0132, subdivision 26, to provide an unlimited subtraction for Social Security benefits from individual income taxes. The previous structure, which included various thresholds and reductions based on adjusted gross income, has been removed. Instead, the bill establishes that the amount of Social Security benefits received will be fully subtracted from taxable income, simplifying the tax calculation for individuals receiving these benefits.

Additionally, the bill clarifies the definition of "Social Security benefits" by referencing the Internal Revenue Code. It also specifies that the new provisions will take effect for 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 limitations and phaseout thresholds.

Statutes affected:
Introduction: 290.0132