The bill amends Section 44-30-12 of the General Laws in Chapter 44-30, which governs personal income tax for resident individuals in Rhode Island. It introduces new legal language to define Rhode Island income as the adjusted gross income for federal tax purposes, with specific modifications. The bill increases the federal adjusted gross income threshold for modification of taxable Social Security income, allowing individuals who have attained the age used for calculating full or unreduced Social Security retirement benefits to exclude their Social Security benefits from taxable income if their federal adjusted gross income is below certain thresholds: $140,000 for unmarried individuals, heads of household, or married individuals filing separately, and $180,000 for married individuals filing jointly or qualifying widow(er)s.

Additionally, the bill amends references to the federal adjusted gross income as it pertains to the modification of taxable retirement income from certain pension plans or annuities. The act is designed to update and clarify the state's income tax regulations and is set to take effect immediately upon passage.

Statutes affected:
2365: 44-30-12