MN SF952

Creates a new "second alternate subtraction" that phases out Minnesota state income tax on Social Security benefits over 10 years, starting at 10% in tax year 2025 and increasing by 10% annually until reaching 100% exemption in tax year 2034

Allows taxpayers to claim whichever subtraction method provides the greatest benefit: the existing simplified subtraction, the first alternate subtraction, or the new phased second alternate subtraction

Maintains current income-based phaseout thresholds for the simplified subtraction: $100,000 for married filing jointly/surviving spouses, $78,000 for single/head of household filers

Preserves maximum subtraction caps for the first alternate method at $5,840 for joint filers and $4,560 for single/head of household filers, with reductions based on provisional income

Effective for taxable years beginning after December 31, 2024