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 structure, which included various thresholds and reductions based on adjusted gross income, has been removed. Instead, the new language states that the amount of Social Security benefits received will be fully subtracted from taxable income, simplifying the tax process for individuals receiving these benefits.

Additionally, the bill clarifies the definition of "Social Security benefits" by referencing the Internal Revenue Code. It also establishes that the new provisions will take effect for taxable years beginning after December 31, 2024. This change aims to provide greater financial relief to taxpayers relying on Social Security benefits without the complexities of income thresholds and reductions that were previously in place.

Statutes affected:
Introduction: 290.0132