WeVote
Log In

Bill

Bill

SF 952

Social Security income subject to tax phase out provision

2025-2026 Regular Session Introduced by Bill Weber

SF 952 subjects Social Security income to Minnesota tax phase-out provisions, potentially reducing benefits for seniors with moderate additional retirement income.

Referred to Taxes
#revenuedepartment #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · SF 952

Legislative bill overview

SF 952 would subject Social Security income to Minnesota's tax phase-out provisions, meaning seniors with higher incomes could lose some or all of their Social Security benefits through the state tax system. This bill modifies how the state treats Social Security income in calculating tax liability and potential benefit reductions.

Why is this important

Social Security is the primary income source for many Minnesota seniors, and subjecting it to phase-out provisions could significantly reduce take-home income for retirees with modest additional income sources (pensions, investments, part-time work). This would effectively lower the value of Social Security benefits for affected seniors and could push some into higher effective tax rates during retirement.

Potential points of contention

  • Regressive impact on low-income seniors: Phase-outs disproportionately affect those with limited income sources who cannot easily adjust their finances
  • Complexity and unintended consequences: Seniors may not understand how phase-outs work, and coordination with federal tax rules could create confusion and errors
  • Economic fairness debate: Questions about whether the state should tax benefits that are partially funded by retirees' prior payroll tax contributions

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

Sign in to ask a question.