Minnesota residents who have been paying taxes on their Social Security income will no longer need to with the new end of session deal.
Lawmakers passed a deal that will completely eliminate taxes on Social Security income.
It will also cut down individual income taxes, and expand the renter’s credit.
Over the span of 3 years, the tax breaks will total around $4 billion dollars, according to Fox 9.
The deal was signed by leaders of the House and Senate tax committee, but still needs spending measures agreed upon before being passed.
The largest part of the bill is the retirement benefit tax elimination which amounts to $500 million per year.
Low income retirees are already exempt from state income tax, but higher earning retirees will no longer pay income taxes.
The total amount saved would be an average of $1,253 per year for 410,000 retirees.
This is the first time in 40 years all Social Security income tax will be eliminated in Minnesota.
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