Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF104 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; individual income; allowing an unlimited Social Security
3	3	1.3 subtraction; amending Minnesota Statutes 2024, section 290.0132, subdivision
4	4	1.4 26.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 290.0132, subdivision 26, is amended to read:
7	7	1.7 Subd. 26.Social Security benefits.(a) A taxpayer is allowed a subtraction equal to the
8	8	1.8greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
9	9	1.9determined under paragraph (e).
10	10	1.10 (b) A taxpayer's simplified subtraction equals the amount of taxable social security
11	11	1.11benefits, as reduced under paragraphs (c) and (d).
12	12	1.12 (c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
13	13	1.13gross income above the phaseout threshold, the simplified subtraction is reduced by ten
14	14	1.14percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the
15	15	1.15phaseout threshold. The phaseout threshold equals:
16	16	1.16 (1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
17	17	1.17 (2) $78,000 for a single or head of household taxpayer; and
18	18	1.18 (3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
19	19	1.19filing a joint return.
20	20	1.20 (d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
21	21	1.21by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of
22	22	1.22the phaseout threshold.
23	23	1Section 1.
24	24	25-00560 as introduced12/05/24 REVISOR EAP/KR
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 104NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: DRAZKOWSKI)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/16/2025
31	31	Referred to Taxes 2.1 (e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits
32	32	2.2or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).
33	33	2.3 (f) For married taxpayers filing a joint return and surviving spouses, the maximum
34	34	2.4subtraction under paragraph (c) equals $5,840. The maximum subtraction is reduced by 20
35	35	2.5percent of provisional income over $88,630. In no case is the subtraction less than zero.
36	36	2.6 (g) For single or head-of-household taxpayers, the maximum subtraction under paragraph
37	37	2.7(c) equals $4,560. The maximum subtraction is reduced by 20 percent of provisional income
38	38	2.8over $69,250. In no case is the subtraction less than zero.
39	39	2.9 (h) For married taxpayers filing separate returns, the maximum subtraction under
40	40	2.10paragraph (c) equals one-half the maximum subtraction for joint returns under paragraph
41	41	2.11(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half
42	42	2.12the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.
43	43	2.13 (i) For purposes of this subdivision, "provisional income" means modified adjusted gross
44	44	2.14income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
45	45	2.15taxable Social Security benefits received during the taxable year, and "Social Security
46	46	2.16benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
47	47	2.17 (j) The commissioner shall adjust the phaseout threshold amounts in paragraphs (c) and
48	48	2.18(d) as provided in section 270C.22. The statutory year is taxable year 2023. The maximum
49	49	2.19subtraction and threshold amounts as adjusted must be rounded to the nearest $10 amount.
50	50	2.20If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
51	51	2.21 The amount of Social Security benefits received is a subtraction.
52	52	2.22 EFFECTIVE DATE.This section is effective for taxable years beginning after December
53	53	2.2331, 2024.
54	54	2Section 1.
55	55	25-00560 as introduced12/05/24 REVISOR EAP/KR