Unlimited Social Security subtraction permission

SF 940 would remove the cap on Minnesota taxpayers' ability to subtract Social Security benefits from their state income tax, allowing them to deduct the full amount of their benefits instead of being limited to specific dollar amounts (like $5,840 for joint filers). Currently, this deduction phases out for higher earners, but the bill eliminates the previous maximum limits while keeping the existing income-based phaseout thresholds. This change directly affects Minnesota residents who receive Social Security benefits and file state income tax returns. The bill takes effect for tax years beginning after December 31, 2024.