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SF 3620

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 02:59pm

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

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; providing for an unlimited subtraction of
Social Security and other retirement benefits income; amending Minnesota Statutes
2019 Supplement, section 290.0132, subdivision 26.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 290.0132, subdivision 26, is
amended to read:


Subd. 26.

Social Security new text beginand other retirement new text endbenefits.

deleted text begin (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).
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

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) 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.
deleted text end new text begin The following amounts received by the taxpayer in a taxable year are allowed as
a subtraction:
new text end

new text begin (1) taxable Social Security benefits; and
new text end

new text begin (2) the total taxable amount received as a distribution or withdrawal from a governmental
or other pension, annuity, or retirement savings plan, including but not limited to a qualified
defined benefit or defined contribution plan under section 401(a) of the Internal Revenue
Code, a 401(k) plan, a plan listed in section 219(g)(5) of the Internal Revenue Code, a
deferred compensation plan under section 457(b) of the Internal Revenue Code, a simplified
employee pension (SEP) plan, a savings incentive match plan for employees (SIMPLE)
plan, an individual retirement account or annuity under section 408 of the Internal Revenue
Code, and a multiemployer pension plan described in section 414(f) of the Internal Revenue
Code.
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, 2019.
new text end