Individual income tax subtraction for income earned by individuals 17 and younger established.

This bill creates a new tax subtraction in Minnesota for income earned by individuals aged 17 and younger, allowing their income to be excluded from taxable income. The provision applies to both earned income, such as wages from a job, and unearned income like interest or dividends, though the subtraction amount is limited for dependents claimed on another taxpayer's return. Specifically, the subtraction is capped at the sum of the child's earned income, any required additions to their adjusted gross income, and the lesser of their unearned income or twice the standard deduction for dependents. The law will take effect for taxable years beginning after December 31, 2025, meaning it will apply to income earned in 2026 and later.