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HF 3998

Individual income tax subtraction for income earned by individuals 17 and younger established.

2025-2026 Regular Session Introduced by Mike Wiener

Bill creates income tax subtraction for Minnesotans under 18, exempting their earned wages from state income tax and reducing their tax liability.

Introduction and first reading, referred to Taxes
#childrenandminors #taxation-income
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Bill Summary · HF 3998

Legislative bill overview

HF 3998 would create a new tax subtraction allowing individuals age 17 and younger to exclude earned income from Minnesota state income tax calculation. This provision would apply to wages and other earned income, effectively reducing the taxable income of working teenagers.

Why is this important

Teen employment and part-time work support skill development and financial literacy, but current tax policy treats teenage earnings identically to adult income. This bill recognizes working minors as a distinct group by providing targeted tax relief on their earned income, which could increase take-home pay for teenage workers.

Potential points of contention

  • Revenue impact: The fiscal cost to the state budget depends on how many teenagers work and earn taxable income; even modest participation could represent meaningful lost revenue
  • Fairness questions: Critics may argue this creates unequal tax treatment based on age, or that it primarily benefits families who can afford to have teens work part-time rather than work-study necessity
  • Policy scope: Unclear whether the subtraction applies to all earned income or has income limits; a teenager with substantial earnings could receive larger tax benefits than intended
  • Implementation complexity: Tax administration would need mechanisms to verify age and distinguish earned versus unearned income for filers claiming the subtraction

Compiled from official sources — confirm details with the bill’s official record.

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