Unlimited Social Security subtraction permission

This bill (SF 22) removes income-based limits on deducting Social Security benefits from Minnesota state income tax. Currently, taxpayers face reduced or eliminated deductions based on income levels (e.g., married couples filing jointly lose full deduction above $88,630 in provisional income). The bill would allow all Minnesota taxpayers receiving Social Security benefits to subtract the full amount of those benefits from their taxable income, regardless of income level. It directly affects Minnesota residents who receive Social Security benefits and file state tax returns, as it eliminates the previous phaseout thresholds and maximum subtraction amounts. The change would take effect for tax years beginning after December 31, 2024.