| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; individual income; allowing an unlimited Social Security |
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| 3 | 3 | | 1.3 subtraction; amending Minnesota Statutes 2022, section 290.0132, subdivision |
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| 4 | 4 | | 1.4 26. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2022, section 290.0132, subdivision 26, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 26.Social Security benefits.(a) A portion The amount of taxable Social Security |
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| 8 | 8 | | 1.8benefits received by a taxpayer in the taxable year is allowed as a subtraction. The subtraction |
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| 9 | 9 | | 1.9equals the lesser of taxable Social Security benefits or a maximum subtraction subject to |
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| 10 | 10 | | 1.10the limits under paragraphs (b), (c), and (d). |
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| 11 | 11 | | 1.11 (b) For married taxpayers filing a joint return and surviving spouses, the maximum |
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| 12 | 12 | | 1.12subtraction equals $5,150. The maximum subtraction is reduced by 20 percent of provisional |
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| 13 | 13 | | 1.13income over $78,180. In no case is the subtraction less than zero. |
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| 14 | 14 | | 1.14 (c) For single or head-of-household taxpayers, the maximum subtraction equals $4,020. |
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| 15 | 15 | | 1.15The maximum subtraction is reduced by 20 percent of provisional income over $61,080. |
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| 16 | 16 | | 1.16In no case is the subtraction less than zero. |
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| 17 | 17 | | 1.17 (d) For married taxpayers filing separate returns, the maximum subtraction equals |
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| 18 | 18 | | 1.18one-half the maximum subtraction for joint returns under paragraph (b). The maximum |
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| 19 | 19 | | 1.19subtraction is reduced by 20 percent of provisional income over one-half the threshold |
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| 20 | 20 | | 1.20amount specified in paragraph (b). In no case is the subtraction less than zero. |
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| 21 | 21 | | 1.21 (e) For purposes of this subdivision, "provisional income" means modified adjusted |
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| 22 | 22 | | 1.22gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR EAP/CS 23-0186001/05/23 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 199 |
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| 30 | 30 | | NINETY-THIRD SESSION |
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| 31 | 31 | | Authored by Engen and Curran01/09/2023 |
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| 32 | 32 | | The bill was read for the first time and referred to the Committee on Taxes 2.1the taxable Social Security benefits received during the taxable year, and "Social Security |
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| 33 | 33 | | 2.2benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code. |
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| 34 | 34 | | 2.3 (f) The commissioner shall adjust the maximum subtraction and threshold amounts in |
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| 35 | 35 | | 2.4paragraphs (b) to (d) as provided in section 270C.22. The statutory year is taxable year |
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| 36 | 36 | | 2.52019. The maximum subtraction and threshold amounts as adjusted must be rounded to the |
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| 37 | 37 | | 2.6nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 |
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| 38 | 38 | | 2.7amount. |
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| 39 | 39 | | 2.8 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 40 | 40 | | 2.931, 2022. |
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| 41 | 41 | | 2Section 1. |
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| 42 | 42 | | REVISOR EAP/CS 23-0186001/05/23 |
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