This bill amends Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal Income Tax." The amendment adds new language stating that the Rhode Island income of a resident individual means their adjusted gross income for federal income tax purposes, with specified modifications. The bill also 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, the bill aims to clarify and update the provisions related to Rhode Island income for resident individuals and the modifications that apply to their federal adjusted gross income.

This bill aims to make changes to the personal income tax laws in Rhode Island. It proposes to increase the federal adjusted gross income threshold for modification of taxable social security income. Currently, for tax years beginning on or after January 1, 2016, through December 31, 2023, 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 are eligible for a modification. The bill suggests increasing these thresholds for tax years beginning on or after January 1, 2024. Additionally, the bill seeks to amend references to the federal adjusted gross income as it pertains to the modification of taxable retirement income from certain pension plans or annuities. It proposes adjustments for inflation and changes to the dollar amounts allowed for modification. If passed, this bill would take effect immediately.

Statutes affected:
2058: 44-30-12