Minn. Stat. § 290.0675

Current through Register Vol. 49, No. 8, August 19, 2024

Section 290.0675 - MARRIAGE PENALTY CREDIT

Subdivision 1.Definitions.

(a) For purposes of this section the following terms have the meanings given.

(b) "Earned income" means the sum of the following, to the extent included in Minnesota taxable income:

(1) earned income as defined in section 290.01, subdivision 33;

(2) income received from a retirement pension, profit-sharing, stock bonus, or annuity plan; and

(3) Social Security benefits as defined in section 86(d)(1) of the Internal Revenue Code.

(c) "Taxable income" means net income as defined in section 290.01, subdivision 19.

(d) "Earned income of lesser-earning spouse" means the earned income of the spouse with the lesser amount of earned income as defined in paragraph (b) for the taxable year minus one-half the amount of the standard deduction under section 290.0123, subdivision 1, clause (1).

Subd. 2.Credit allowed.

A married couple filing a joint return is allowed a credit against the tax imposed under section 290.06.

Subd. 3.Credit amount.

The credit amount is the difference between the tax on the couple's joint Minnesota taxable income under the rates and income levels in section 290.06, subdivision 2c, paragraph (a), as adjusted for the taxable year by section 290.06, subdivision 2d, and the sum of the tax under the rates and income levels of section 290.06, subdivision 2c, paragraph (b), as adjusted for the taxable year by section 290.06, subdivision 2d, on the earned income of the lesser-earning spouse, and the tax under the rates and income levels of section 290.06, subdivision 2c, paragraph (b), as adjusted for the taxable year by section 290.06, subdivision 2d, on the couple's joint Minnesota taxable income, minus the earned income of the lesser-earning spouse.

The commissioner of revenue shall prepare and make available to taxpayers a comprehensive table showing the credit under this section at brackets of earnings of the lesser-earning spouse and joint taxable income. The brackets of earnings shall not be more than $2,000.

Subd. 4.Nonresidents and part-year residents.

For a nonresident or part-year resident, the credit must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).

Subd. 5.

[Repealed, 2003 c 127 art 3s 24]

Minn. Stat. § 290.0675

1999 c 243 art 2 s 15; 2000 c 490 art 4 s 22-24; 1Sp2001 c 5 art 7 s 40, 41; 2002 c 377 art 10 s 12, 13; 2003 c 127 art 3 s 12, 13; 1Sp2005 c 3 art 4 s 14; 1Sp2005 c 7 s 39; 2006 c 259 art 2 s 6; 1Sp2011 c 7 art 2s 7; 2014 c 150 art 1 s 20; 2016 c 158 art 3 s 17

Amended by 2023 Minn. Laws, ch. 1,s 17, eff. 1/12/2023.

Amended by 2019 Minn. Laws, ch. 6,s 1-42, eff. 8/1/2019.

Amended by 2016 Minn. Laws, ch. 158,s 3-17, eff. 8/1/2016.

Amended by 2014 Minn. Laws, ch. 150,s 1-20, eff. 3/22/2014.