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 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" in accordance with the Internal Revenue Code and specifies that the new provisions will take effect for taxable years beginning after December 31, 2024. This change aims to provide greater tax relief for individuals relying on Social Security benefits without the complexities of income thresholds and reductions that were previously in place.

Statutes affected:
Introduction: 290.0132