1.1 	A bill for an act
1.2 	relating to taxation; individual income; allowing an unlimited Social Security 
1.3 	subtraction;amending Minnesota Statutes 2020, section 290.0132, subdivision 
1.4 	26.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2020, section 290.0132, subdivision 26, is amended to read:
1.7 		Subd. 26.Social Security benefits. ~~(a) A portion~~ The amount of ~~taxable~~ Social Security 
1.8 	benefits received by a taxpayer in the taxable year is allowed as a subtraction. ~~The subtraction~~ 
1.9 	~~equals the lesser of taxable Social Security benefits or a maximum subtraction subject to~~ 
1.10 	~~the limits under paragraphs (b), (c), and (d).~~
1.11 	~~(b) For married taxpayers filing a joint return and surviving spouses, the maximum~~ 
1.12 	~~subtraction equals $5,150. The maximum subtraction is reduced by 20 percent of provisional~~ 
1.13 	~~income over $78,180. In no case is the subtraction less than zero.~~
1.14 	~~(c) For single or head-of-household taxpayers, the maximum subtraction equals $4,020.~~ 
1.15 	~~The maximum subtraction is reduced by 20 percent of provisional income over $61,080.~~ 
1.16 	~~In no case is the subtraction less than zero.~~
1.17 	~~(d) For married taxpayers filing separate returns, the maximum subtraction equals~~ 
1.18 	~~one-half the maximum subtraction for joint returns under paragraph (b). The maximum~~ 
1.19 	~~subtraction is reduced by 20 percent of provisional income over one-half the threshold~~ 
1.20 	~~amount specified in paragraph (b). In no case is the subtraction less than zero.~~
1.21 	~~(e) For purposes of this subdivision, "provisional income" means modified adjusted~~ 
1.22 	~~gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of~~ 
2.1 	~~the taxable Social Security benefits received during the taxable year, and "Social Security~~ 
2.2 	~~benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.~~
2.3 	~~(f) The commissioner shall adjust the maximum subtraction and threshold amounts in~~ 
2.4 	~~paragraphs (b) to (d) as provided in section 270C.22. The statutory year is taxable year~~ 
2.5 	~~2019. The maximum subtraction and threshold amounts as adjusted must be rounded to the~~ 
2.6 	~~nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10~~ 
2.7 	~~amount.~~

2.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.9 	31, 2020.