Unlimited Social Security income tax subtraction authorization

SF 1231 would amend Minnesota's tax code to allow taxpayers to subtract the full amount of their Social Security benefits from their state taxable income, removing current income-based phaseout limits and maximum subtraction amounts. This change directly affects Minnesota residents who receive Social Security benefits (including retirement, survivor, or disability payments) and file state income tax returns. The bill eliminates previous caps (e.g., $5,840 for joint filers) and phaseout thresholds, making the subtraction "unlimited" for all qualifying benefit recipients. It becomes effective for tax years beginning after December 31, 2024.