Unlimited Social Security individual income tax subtraction provided.

HF 828 would eliminate income limits and maximum caps on deducting Social Security benefits from Minnesota taxable income. Currently, taxpayers lose part of this deduction as their income rises (phaseout) and cannot deduct more than set maximum amounts (e.g., $5,840 for joint filers). The bill changes the law to allow a full subtraction equal to all taxable Social Security benefits received, without phaseout or maximum limits. This directly affects Minnesota taxpayers who receive Social Security benefits and currently face these restrictions. The change takes effect for tax years beginning after December 31, 2024.