Allows a modification to federal adjusted gross income of twenty thousand dollars ($20,000) of social security income for tax years beginning on or after January 1, 2024.
Impact
By implementing this modification, S2563 is expected to enhance the financial well-being of retirees, particularly those whose federal adjusted gross income falls within the specified thresholds. This amendment not only targets older citizens receiving Social Security but also reflects the state's commitment to easing the tax burden on its residents, thereby potentially increasing disposable income for a demographic that often faces fixed incomes.
Summary
Senate Bill S2563 aims to amend the Rhode Island personal income tax laws by allowing a modification of federal adjusted gross income for taxpayers, allowing them to subtract up to twenty thousand dollars ($20,000) of Social Security income. This change is intended to provide financial relief for retired individuals who depend on Social Security benefits, aligning state tax law more favorably with federal provisions.
Contention
One notable aspect surrounding the bill is its fiscal implications for the state's budget. Opponents may argue that while the bill could provide necessary relief to individuals, it may also reduce tax revenue that the state relies on to fund public services. Consequently, there may be concerns regarding how this bill will affect the overall budgetary health of Rhode Island in the long term, particularly in balancing the needs for social services and maintaining adequate funding for various state programs.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Establishes the first time home buyer savings program act. Allows modifications to federal adjusted gross income for $50,000 in contributions and $150,000 of interest and dividends included in federal adjusted gross income.
Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.