Veterans and surviving spouses taxable Social Security benefits full subtraction provision

This bill, SF 1159, changes Minnesota's state income tax law to allow veterans and surviving spouses of veterans to fully subtract their taxable Social Security benefits from their state taxable income. Currently, most taxpayers face income-based phaseouts that reduce this subtraction; this bill removes that limitation specifically for veterans and surviving spouses. It directly affects eligible veterans and surviving spouses who receive Social Security benefits and file Minnesota state income tax returns. The change applies to tax years beginning after December 31, 2024, and eliminates the income thresholds that previously reduced the subtraction amount for this group.