Unlimited Social Security income tax subtraction authorization

SF 1239 would amend Minnesota's tax code to allow taxpayers to subtract all their Social Security benefits from taxable income without income-based limits. Currently, the subtraction amount decreases for higher earners (e.g., $5,840 maximum for joint filers), but this bill removes those phaseout thresholds and maximum caps. It directly affects all Minnesota taxpayers receiving Social Security benefits who file state income tax returns. The change takes effect for tax returns filed in 2025 (taxable years beginning after December 31, 2024).