2002 Minnesota Statutes

     290.0675 Marriage penalty credit. 

    Subdivision 1.    Definitions.  (a) For purposes of this 
 section the following terms have the meanings given. 

    (b) "Earned income" means the sum of the following, to the 
 extent included in Minnesota taxable income: 

    (1) earned income as defined in section 32(c)(2) of the 
 Internal Revenue Code; 

    (2) income received from a retirement pension, 
 profit-sharing, stock bonus, or annuity plan; and 

    (3) social security benefits as defined in section 86(d)(1) 
 of the Internal Revenue Code. 

    (c) "Taxable income" means net income as defined in section 
 290.01, subdivision 19. 

    (d) "Earned income of lesser-earning spouse" means the 
 earned income of the spouse with the lesser amount of earned 
 income as defined in paragraph (b) for the taxable year minus 
 the sum of (i) the amount for one exemption under section 151(d) 
 of the Internal Revenue Code and (ii) one-half the amount of the 
 standard deduction under section 63(c)(2)(A) and (4) of the 
 Internal Revenue Code.  

    Subd. 2.    Credit allowed.  A married couple filing a 
 joint return is allowed a credit against the tax imposed under 
 section 290.06.  

    The minimum taxable income for the married couple to be 
 eligible for the credit is $25,680, and the minimum earned 
 income in order for the couple to be eligible for the credit is 
 $14,250 for each spouse. 

    Subd. 3.    Credit amount.  The credit amount is the 
 difference between the tax on the couple's joint Minnesota 
 taxable income under the rates in section 290.06, subdivision 
 2c, paragraph (a), and the sum of the tax under the rates of 
 section 290.06, subdivision 2c, paragraph (b), on the earned 
 income of the lesser-earning spouse, and the tax under the rates 
 of section 290.06, subdivision 2c, paragraph (b), on the 
 couple's joint Minnesota taxable income, minus the earned income 
 of the lesser-earning spouse. 

    The commissioner of revenue shall prepare and make 
 available to taxpayers a comprehensive table showing the credit 
 under this section at brackets of earnings of the lesser-earning 
 spouse and joint taxable income.  The brackets of earnings shall 
 not be more than $2,000. 

    Subd. 4.    Nonresidents and part-year residents.  For a 
 nonresident or part-year resident, the credit must be allocated 
 based on the percentage calculated under section 290.06, 
 subdivision 2c, paragraph (e). 

    Subd. 5.    Inflation adjustment.  The dollar amount of 
 earned income of the lesser-earning spouse, taxable income, and 
 marriage penalty credit in the table in subdivision 3 must be 
 adjusted for inflation.  The commissioner shall adjust the 
 amounts by the percentage determined under section 290.06, 
 subdivision 2d, for the taxable year. 

    HIST: 1999 c 243 art 2 s 15; 2000 c 490 art 4 s 22-24; 1Sp2001 
 c 5 art 7 s 40,41; 2002 c 377 art 10 s 12,13