AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

SB 2227 amends Rhode Island's personal income tax code to clarify how withdrawals from the state's tuition savings program are treated for tax purposes. Specifically, it modifies the calculation of taxable income for nonqualified withdrawals (those not used for eligible education expenses) by adding back certain amounts to federal adjusted gross income. This affects residents who use Rhode Island's tuition savings program (§ 16-57-6.1) and make nonqualified withdrawals. The bill does not address foreign service pensions as mentioned in the abstract; the actual provisions focus solely on tuition savings program tax treatment. The changes apply to taxable years beginning on or after January 1, 2020.