Minnesota DOR Issues Information on Public Pension Income Subtraction Concerning Individual Income Taxpayers

The Minnesota Department of Revenue June 27 issued information on a subtraction for certain qualified public pension income, effective for tax years 2023 and later, for individual income tax purposes. Recipients or survivors may qualify for the subtraction if they earn public pension income based on public service and they don’t receive Social Security benefits on the same income. The subtraction amount is limited to: 1) $25,000 for a married taxpayer filing a joint return or a surviving spouse; and 2) $12,500 for all other filers. The information also includes that the subtraction is reduced by 10 percent for each ...