MN HF2788

Allows taxpayers to subtract the full amount of taxable Social Security benefits received, rather than being limited to a capped maximum subtraction amount.

Eliminates income-based phase-out reductions that previously reduced the maximum subtraction by 20 percent of provisional income exceeding threshold amounts ($78,180 for joint filers, $61,080 for single filers).

Removes maximum subtraction caps previously set at $5,150 for married joint filers and surviving spouses and $4,020 for single or head-of-household filers.

Effective for taxable years beginning after December 31, 2021.