Minnesota Legislature
SF 3912
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/10/2022 04:49pm
Current Version - as introduced
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3 2.4 2.5
2.6 2.7
A bill for an act
relating to taxation; individual income; expanding the subtraction for 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 deleted text begin taxabledeleted text end Social Security benefits is
allowed as a subtraction. The subtraction equals the deleted text begin lesserdeleted text end new text begin amountnew text end of taxable Social Security
benefits deleted text begin or a maximum subtractiondeleted text end new text begin ,new text end subject to the limits under paragraphs (b), (c), and (d).
(b) For married taxpayers filing a joint return and surviving spouses, the deleted text begin maximumdeleted text end
subtraction deleted text begin equals $5,150. The maximum subtractiondeleted text end is reduced by 20 percent of deleted text begin provisionaldeleted text end new text begin
adjusted grossnew text end income over deleted text begin $78,180deleted text end new text begin $80,000new text end . In no case is the subtraction less than zero.
(c) For single or head-of-household taxpayers, the deleted text begin maximumdeleted text end subtraction deleted text begin equals $4,020.
The maximum subtractiondeleted text end is reduced by 20 percent of deleted text begin provisionaldeleted text end new text begin adjusted grossnew text end income
over deleted text begin $61,080deleted text end new text begin $62,500new text end . In no case is the subtraction less than zero.
(d) For married taxpayers filing separate returns, the deleted text begin maximumdeleted text end subtraction deleted text begin equals
one-half the maximum subtraction for joint returns under paragraph (b). The maximum
subtractiondeleted text end is reduced by 20 percent of deleted text begin provisionaldeleted text end new text begin adjusted grossnew text end income over one-half the
threshold amount specified in paragraph (b). 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 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.
deleted text end
deleted text begin (f)deleted text end new text begin (e)new text end 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
deleted text begin 2019deleted text end new text begin 2022new text end . 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, 2021.
new text end