MN SF3880

Creates a $4,150 income tax subtraction for each qualifying foster child dependent for Minnesota taxpayers beginning in tax year 2018.

Qualifies foster children must reside with the taxpayer for at least one month of the tax year and be placed through an authorized agency or court order.

Phases out the subtraction for higher-income taxpayers at graduated rates: $1,250 increments for married filing separately and $2,500 increments for other filers, with thresholds ranging from $142,500 to $285,050 depending on filing status.

Prevents double benefit by disallowing the subtraction for taxpayers who claim federal foster child exemptions under Internal Revenue Code sections 151(d) and 152(f).

Requires annual inflation adjustments to dollar amounts beginning in 2019 using the Consumer Price Index for All Urban Consumers, rounded to the nearest $50.