Unlimited Social Security subtraction provision

SF 2011 would amend Minnesota's state income tax law to allow taxpayers to subtract the full amount of their Social Security benefits that is taxable under federal law from their state taxable income, eliminating current income-based phaseouts and maximum limits. Previously, higher-income taxpayers saw their subtraction reduced (e.g., by 10% for each $4,000 over thresholds), but this bill removes those restrictions. It directly affects Minnesota residents who receive Social Security benefits and file state tax returns, particularly those with higher incomes who previously faced reduced benefits. The change takes effect for tax years beginning after December 31, 2024.