This bill amends Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal Income Tax." The amendment adds new language to define the Rhode Island income of a resident individual. It specifies that the Rhode Island income of a resident individual means their adjusted gross income for federal income tax purposes, with certain modifications. The bill includes a list of modifications that increase federal adjusted gross income, such as interest income on obligations of any state other than Rhode Island, interest or dividend income on obligations or securities of the United States, and the amount of a nonqualified withdrawal made from an account in the tuition savings program. Additionally, the bill includes modifications that reduce federal adjusted gross income, such as interest income on obligations of the United States and its possessions and contributions made to an account under the tuition savings program. Overall, this bill aims to amend the current law regarding personal income tax in Rhode Island by specifying the Rhode Island income of a resident individual and making various modifications to federal adjusted gross income.

This bill relates to personal income tax and includes several modifications to the current law. First, it allows individuals who have attained the age used for calculating full or unreduced Social Security retirement benefits and have a federal adjusted gross income below certain thresholds to deduct the amount of Social Security benefits included in their federal adjusted gross income. Second, the bill modifies the taxable retirement income from certain pension plans or annuities. It allows individuals who have attained the age used for calculating full or unreduced Social Security retirement benefits and have a federal adjusted gross income below certain thresholds to deduct a certain amount of taxable pension and/or annuity income included in their federal adjusted gross income. Additionally, the bill includes modifications for Rhode Island investment in opportunity zones, military service pensions, and any rebates issued to taxpayers. It also specifies how modifications should be made for partners and beneficiaries of estates or trusts. Finally, the bill allows individuals with less than $100,000 of total income to deduct all social security income from their federal adjusted gross income for tax years beginning on or after January 1, 2024.

Statutes affected:
5393: 44-30-12