ND HB1129

Amends the definition of "qualifying income" for the marriage penalty credit to include social security benefits as defined in the Internal Revenue Code, to the extent included in North Dakota taxable income.

Modifies the "qualifying income of the lesser-earning spouse" calculation by subtracting one exemption amount and one-half of the standard deduction under federal tax law.

Increases the federal adjusted gross income threshold for a social security benefits tax exclusion from $50,000 to $75,000 for single filers, maintaining $150,000 for married filing jointly taxpayers.

Makes the social security benefits tax exclusion apply by reducing income by the amount of social security benefits included in federal adjusted gross income under Internal Revenue Code section 86.

Section 2 becomes effective for the first two taxable years beginning after December 31, 2020; Sections 1 and 3 become effective for taxable years beginning after December 31, 2022.