HF 885

as introduced - 91st Legislature (2019 - 2020) Posted on 02/11/2019 03:54pm

A bill for an act
relating to taxation; individual income; modifying the Social Security subtraction;
amending Minnesota Statutes 2018, section 290.0132, subdivision 26.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:

Subd. 26.

Social Security benefits.

(a) A portion of Social Security benefits is allowed
as a subtraction. The subtraction equals the deleted text begin lesser deleted text end new text begin amount new text end of Social Security benefits deleted text begin or a
maximum subtraction deleted text end new text begin included in the taxpayer's federal taxable income, new text end subject to the deleted text begin limits deleted text end new text begin
reductions new text end under paragraphs (b), (c), and (d).

(b) For married taxpayers filing a joint return and surviving spouses, the deleted text begin maximum
subtraction equals $4,500. The maximum deleted text end subtraction is reduced by deleted text begin 20 deleted text end new text begin ten new text end percent deleted text begin of
provisional deleted text end new text begin for each $1,000 of adjusted gross new text end income over deleted text begin $77,000 deleted text end new text begin $110,000 new text end . In no case is
the subtraction less than zero.

(c) For single or head-of-household taxpayers, the deleted text begin maximum subtraction equals $3,500.
The maximum deleted text end subtraction is reduced by deleted text begin 20 deleted text end new text begin ten new text end percent deleted text begin of provisional income over $60,200 deleted text end new text begin
for each $1,000 of adjusted gross income over $80,000 new text end . In no case is the subtraction less
than zero.

(d) For married taxpayers filing separate returns, the maximum deleted text begin subtraction equals $2,250.
The maximum subtraction deleted text end is reduced by deleted text begin 20 deleted text end new text begin ten new text end percent deleted text begin of provisional income over $38,500 deleted text end new text begin
for each $1,000 of adjusted gross income over $55,000 new text end . In no case is the subtraction less
than zero.

deleted text begin (e) For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the Social Security benefits received during the taxable year, and "Social Security benefits"
has the meaning given in section 86(d)(1) of the Internal Revenue Code.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end The commissioner shall adjust the deleted text begin maximum subtraction and deleted text end threshold amounts
in paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section
1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue
Code the word deleted text begin "2016" deleted text end new text begin "2018" new text end shall be substituted for deleted text begin the word "1992." For 2018, the
commissioner shall then determine the percentage change from the 12 months ending on
August 31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year,
from the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of
the year preceding the taxable year. deleted text end new text begin "2016." new text end The determination of the commissioner pursuant
to this subdivision must not be considered a rule and is not subject to the Administrative
Procedure Act contained in chapter 14, including section 14.386. The maximum subtraction
and threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end