Minnesota Legislature
SF 1826
as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2019 04:26pm
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A bill for an act
relating to taxation; individual income; modifying the subtraction for Social Security
benefits; 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 $6,025new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $77,000deleted text end new text begin $100,540new 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
$4,690new text end . The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $60,200deleted text end new text begin $78,600new 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
$3,015new text end . The maximum subtraction is reduced by 20 percent of provisional income over
deleted text begin $38,500deleted text end new text begin $50,275new 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,new text begin as amended through December 31, 2016,new text end 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 "1992." For deleted text begin 2018deleted text end new text begin 2020new text end , the commissioner shall then determine the percentage
change from the 12 months ending on August 31, deleted text begin 2016deleted text end new text begin 2018new text end , to the 12 months ending on
August 31, deleted text begin 2017deleted text end new text begin 2019new text end , and in each subsequent year, from the 12 months ending on August
31, deleted text begin 2016deleted text end new text begin 2018new text end , to the 12 months ending on August 31 of the year preceding the taxable
year. 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