Minnesota HF2502 increases the child credit phaseout to eliminate the marriage penalty.

Minnesota HF2502 amends the state's individual income tax law to increase the phaseout thresholds for child credits, effectively eliminating the marriage penalty. For taxable years beginning after December 31, 2025, the phaseout threshold for married taxpayers filing jointly is set at $63,900, and for all other filers, it is $31,950. The commissioner of revenue must annually adjust these thresholds for inflation starting from taxable years after December 31, 2025.

Minnesota HF2502 increases the child credit phaseout to eliminate the marriage penalty.

Minnesota HF2502 amends the state's individual income tax law to increase the phaseout thresholds for child credits, effectively eliminating the marriage penalty. For taxable years beginning after December 31, 2025, the phaseout threshold for married taxpayers filing jointly is set at $63,900, and for all other filers, it is $31,950. The commissioner of revenue must annually adjust these thresholds for inflation starting from taxable years after December 31, 2025.