HB 5034 Summary

• Amends the Income Tax Act of 1967 to clarify and modify Section 30, which determines taxable income for individuals and provides various deductions and adjustments.

• Changes capitalization of "Armed Forces," "Social Security," and "Consumer Price Index" throughout the section for consistency with standard usage.

• Adds provisions for ABLE savings accounts (Achieving a Better Life Experience) allowing deductions for contributions up to $5,000 for single returns or $10,000 for joint returns, with corresponding adjustments for non-qualified withdrawals.

• Expands surviving spouse provisions for tax years beginning after December 31, 2017, allowing surviving spouses who meet age and remarriage requirements to claim retirement income deductions based on their own birth date rather than their deceased spouse's birth date.

• Clarifies existing retirement and pension benefit deduction limitations and restrictions based on taxpayer age cohorts, with different caps for those born before 1946, between 1946-1952, after 1952, and those receiving non-covered government pensions.