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

The Minnesota Department of Revenue Dec. 29, 2023 issued information on the public pension subtraction for individual income taxpayers. Taxpayers may be able to reduce their taxable income if they received certain pension pay for public service. Taxpayers’ pension pay must be taxable on their federal return to qualify for the subtraction. Taxpayers can’t claim the subtraction for service generating both pension payments and Social Security benefits. The information also specifies eligible pension plans from both Minnesota and non-Minnesota sources. The subtraction isn’t available for taxpayers with adjusted gross incomes exceeding: 1) $96,000 for single and head of household filers; ...