MN SF17

Expands Social Security benefits subtraction by allowing the full amount of taxable Social Security benefits received as a subtraction (previously limited to a portion), effective for taxable years beginning after December 31, 2022.

Establishes a new public pension income subtraction for qualified retirement benefits from Minnesota public pension plans, federal government retirement systems, and reciprocal state public retirement systems, with maximum exclusions of $5,450 for joint filers and $4,260 for other filers, phased out at higher income levels.

Public pension subtraction includes both federal and state exclusion components calculated based on provisional income thresholds, with federal exclusion ranging from 100 percent to 15 percent of qualified benefits depending on income levels.

Adds public pension subtraction amounts to the alternative minimum taxable income definition for purposes of the Minnesota minimum tax, effective for taxable years beginning after December 31, 2022.

All maximum subtraction and threshold amounts are subject to annual inflation adjustments rounded to the nearest $10 (rounding up if amount ends in $5).