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HF 2090

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/11/2021 04:09pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/10/2021

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; providing a phase-in of a full subtraction
for taxable Social Security benefits; amending Minnesota Statutes 2020, section
290.0132, subdivision 26.

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

Section 1.

Minnesota Statutes 2020, section 290.0132, subdivision 26, is amended to read:


Subd. 26.

Social Security benefits.

(a) A portion of taxable Social Security benefits is
allowed as a subtraction. The subtraction equals the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs (b), (c), and (d).

(b) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction equals $5,150. The maximum subtraction is reduced by 20 percent of provisional
income over $78,180. In no case is the subtraction less than zero.

(c) For single or head-of-household taxpayers, the maximum subtraction equals $4,020.
The maximum subtraction is reduced by 20 percent of provisional income over $61,080.
In no case is the subtraction less than zero.

(d) For married taxpayers filing separate returns, the maximum subtraction equals
one-half the maximum subtraction for joint returns under paragraph (b). The maximum
subtraction is reduced by 20 percent of provisional income over one-half the threshold
amount specified in paragraph (b). In no case is the subtraction less than zero.

(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 taxable 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.

(f) The commissioner shall adjust the maximum subtraction and threshold amounts in
paragraphs (b) to (d) as provided in section 270C.22. The statutory year is taxable year
2019. 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 (g) Notwithstanding paragraphs (a) to (f), a taxpayer may additionally subtract a
percentage of taxable Social Security benefits not already subtracted under this subdivision.
For the taxable year beginning after December 31, 2020, and before January 1, 2022, the
percentage is 25 percent, and the percentage increases by 25 percentage points each taxable
year until the percentage of additional benefit allowed as a subtraction under this paragraph
is 100 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end