Minnesota Legislature
HF 883
as introduced - 91st Legislature (2019 - 2020) Posted on 04/29/2019 09:38am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/07/2019 |
Current Version - as introduced
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A bill for an act
relating to taxation; individual income; increasing 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 lesser of 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 deleted text begin $4,500deleted text end new text begin $5,000new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $77,000deleted text end new text begin $80,430new text end . In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the maximum subtraction equals deleted text begin $3,500deleted text end new text begin
$3,810new text end . The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $60,200deleted text end new text begin $62,880new text end . In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the maximum subtraction equals deleted text begin $2,250deleted text end new text begin
$2,500new text end . The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $38,500deleted text end new text begin $40,220new text end . 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 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) 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 the word deleted text begin "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