HF 3152

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; income; providing a minimum 
  1.3             subtraction for certain elderly and disabled persons; 
  1.4             amending Minnesota Statutes 1996, section 290.0802, 
  1.5             subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 290.0802, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [SUBTRACTION.] (a) A qualified individual is 
  1.10  allowed a subtraction from federal taxable income for the 
  1.11  greater of (1) the individual's subtraction base amount or (2) 
  1.12  the minimum amount.  The excess of the subtraction base amount 
  1.13  over the taxable net income computed without regard to the 
  1.14  subtraction for the elderly or disabled under section 290.01, 
  1.15  subdivision 19b, clause (5), may be used to reduce the amount of 
  1.16  a lump sum distribution subject to tax under section 290.032. 
  1.17     (b)(1) The initial subtraction base amount equals 
  1.18     (i) $12,000 for a married taxpayer filing a joint return if 
  1.19  a spouse is a qualified individual, 
  1.20     (ii) $9,600 for a single taxpayer, and 
  1.21     (iii) $6,000 for a married taxpayer filing a separate 
  1.22  federal return. 
  1.23     (2) The qualified individual's initial subtraction base 
  1.24  amount, then, must be reduced by the sum of nontaxable 
  1.25  retirement and disability benefits and one-half of the amount of 
  2.1   adjusted gross income in excess of the following thresholds: 
  2.2      (i) $18,000 for a married taxpayer filing a joint return if 
  2.3   both spouses are qualified individuals, 
  2.4      (ii) $14,500 for a single taxpayer or for a married couple 
  2.5   filing a joint return if only one spouse is a qualified 
  2.6   individual, and 
  2.7      (iii) $9,000 for a married taxpayer filing a separate 
  2.8   federal return. 
  2.9      (3) In the case of a qualified individual who is under the 
  2.10  age of 65, the maximum amount of the subtraction base may not 
  2.11  exceed the taxpayer's disability income. 
  2.12     (4) The resulting amount is the subtraction base amount. 
  2.13     (c) Qualified individuals who must include social security 
  2.14  benefits above the second federal threshold in federal taxable 
  2.15  income may claim a minimum amount equal to the lesser of 
  2.16     (1) the amount of social security benefits above the second 
  2.17  federal threshold included in federal taxable income; or 
  2.18     (2) a minimum amount subject to an income phase-out. 
  2.19     For taxable years beginning after December 31, 1993, and 
  2.20  before January 1, 1995, The minimum amount equals 
  2.21     (i) $3,750 for married individuals filing a joint return if 
  2.22  both spouses are qualified individuals, 
  2.23     (ii) $3,000 for a single taxpayer or for married 
  2.24  individuals filing a joint return if one spouse is a qualified 
  2.25  individual, and 
  2.26     (iii) $1,875 for a married individual filing a separate 
  2.27  return. 
  2.28     For taxable years beginning after December 31, 1994, and 
  2.29  before January 1, 1996, the minimum amount equals 
  2.30     (i) $2,250 for married individuals filing a joint return if 
  2.31  both spouses are qualified individuals, 
  2.32     (ii) $1,800 for a single taxpayer or for married 
  2.33  individuals filing a joint return if one spouse is a qualified 
  2.34  individual, and 
  2.35     (iii) $1,125 for married individuals filing a separate 
  2.36  return. 
  3.1      For taxable years beginning after December 31, 1995, and 
  3.2   before January 1, 1997, the minimum amount equals 
  3.3      (i) $1,000 for married individuals filing a joint return if 
  3.4   both spouses are qualified individuals, 
  3.5      (ii) $800 for a single taxpayer or for married individuals 
  3.6   filing a joint return if one spouse is a qualified individual, 
  3.7   and 
  3.8      (iii) $500 for married individuals filing a separate return.
  3.9      For taxable years beginning after December 31, 1996, the 
  3.10  minimum amount is zero. 
  3.11     The minimum amount is reduced by 20 percent for each $1,000 
  3.12  of adjusted gross income above an income threshold, but in no 
  3.13  case may the minimum amount be reduced to less than zero.  The 
  3.14  income thresholds equal 
  3.15     (i) $75,000 for married individuals filing a joint return 
  3.16  if both spouses are qualified individuals, 
  3.17     (ii) $60,000 for single taxpayers and for married 
  3.18  individuals filing a joint return if only one spouse is a 
  3.19  qualified individual, and 
  3.20     (iii) $37,500 for married individuals filing a separate 
  3.21  return. 
  3.22     Sec. 2.  [EFFECTIVE DATE.] 
  3.23     Section 1 is effective for taxable years beginning after 
  3.24  December 31, 1997.