Minnesota HF1632 provides a subtraction for foreign service pension income in state tax calculations.

Minnesota HF1632 amends state tax law to introduce a subtraction for foreign service pension income. This bill modifies the definition of taxable income by allowing a subtraction for compensation received from a federal pension or retirement pay for service in the foreign service. The subtraction is calculated based on the amount of compensation and the ratio of years of foreign service to total years of civil service for which the taxpayer receives pension income. This change is effective for taxable years beginning after December 31, 2024.

Minnesota HF1632 provides a subtraction for foreign service pension income in state tax calculations.

Minnesota HF1632 amends state tax law to introduce a subtraction for foreign service pension income. This bill modifies the definition of taxable income by allowing a subtraction for compensation received from a federal pension or retirement pay for service in the foreign service. The subtraction is calculated based on the amount of compensation and the ratio of years of foreign service to total years of civil service for which the taxpayer receives pension income. This change is effective for taxable years beginning after December 31, 2024.