Minnesota

This is one of the states that is still taxing social security benefits, but it’s essential to know that this happens because the whole procedure is closely tied to federal tax rules. How? If your Social Security income is considered taxable at the federal level, it will also be taxable in Minnesota.

Hopefully, you can get some relief through a Social Security income subtraction that applies to those who qualify, which means you might be eligible to get your tax burden reduced. This subtraction is based on adjusted gross income (AGI), and it works like this: For every $4,000 of income above the threshold, the subtraction is reduced by 10% (or by 10% for every $2,000 of AGI for those married filing separately).

You are eligible if you meet the following conditions. In case you are married and filing jointly, you get fully tax-exempt if AGI is $105,380 or less. Married Filing Separately? Fully tax-exempt if AGI is $52,960 or less. And if you are single or the head of a household, you are fully tax-exempt if AGI is $82,190 or less.

Kay