Unlimited Social Security subtraction provision

SF 1631 would amend Minnesota's tax code to allow taxpayers to subtract all their Social Security benefits from taxable income without income-based phaseouts or maximum limits. Currently, deductions for Social Security benefits are reduced for higher earners (e.g., joint filers with income over $88,630 face reduced deductions), but this bill removes those restrictions. The change directly affects Minnesota taxpayers receiving Social Security benefits, particularly higher-income retirees who previously paid state tax on part of their benefits. It takes effect for taxable years beginning after December 31, 2024, and modifies Minnesota Statutes section 290.0132, subdivision 26.