This bill amends Section 44-30-12 of the General Laws to define the Rhode Island income of a resident individual as 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 nonqualified withdrawals from an account in the tuition savings program. It also 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. The bill aims to provide clarity and make necessary changes to the calculation of Rhode Island income for resident individuals.

Additionally, this bill proposes to allow individuals to subtract all social security income from their federal adjusted gross income for tax years beginning on or after January 1, 2024. The bill includes provisions for adjustments for inflation and rounding of increases. The bill would take effect upon passage.

Statutes affected:
5145: 44-30-12