Minnesota

Minnesota has the same thresholds as the federal government, to determine just how much should the state tax a retiree’s Social Security benefits. Besides, those who owe taxes on their benefits should take advantage of Minnesota’s Social Security Subtraction, to secure at least a partial deduction.

For instance, in 2021, single filers and couples who filed together were able to exempt as much as $4,130 and $5,290 from their federally taxable benefits taken from their Minnesota income.

It’s also worth mentioning that this doesn’t apply to residents who are in a higher income bracket. Single filers and couples with AGIs of a minimum of $62,710 and $80,270 only qualify for a partial exemption; while those with AGIs above $83,360 and $106,720 don’t qualify.

Dorothy