Expand Deduction For Retirement Benefits
| Type | Bill |
|---|---|
| Session | 2025 Regular Session |
| Subjects |
Concerning an expansion of the state income tax subtraction for retirement benefits to allow an individual to subtract all such benefits from federal taxable income for the purpose of calculating state taxable income regardless of the individual's income or age.
Bill Summary:
Current law allows any individual to deduct amounts, up to certain caps based on the individual's age, received as pensions or annuities from any source, to the extent included in federal adjusted gross income.
Notwithstanding the caps on the deduction for amounts received as pensions or annuities from other sources, current law allows any individual who is 65 years of age or older at the close of a taxable year to subtract the total amount of social security benefits that the individual received from the individual's federal taxable income, to the extent those benefits were included in federal taxable income, when determining the individual's state taxable income. Beginning January 1, 2025, this subtraction is also allowed to any individual who is 55 years of age or older and has an adjusted gross income for the applicable tax year that is less than or equal to $75,000 if filing individually or $95,000 if filing jointly.
For income tax years commencing on or after January 1, 2026, the bill removes all caps on the deduction for amounts received as pensions and annuities and allows any individual, regardless of age or income, to subtract the total amount that the individual received as pension or annuity income from the individual's federal taxable income, to the extent that income was included in federal taxable income, when determining the individual's state taxable income.
(Note: This summary applies to this bill as introduced.)
Committees
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 02/05/2025 | Introduced |
| Activity | Vote | Documents |
|---|---|---|
| Refer Senate Bill 25-136 to the Committee on Appropriations. | The motion failed on a vote of 2-3. | Vote summary |
| Postpone Senate Bill 25-136 indefinitely using a reversal of the previous roll call. There was no objection to the use of the reverse roll call, therefore, the bill was postponed indefinitely. | The motion passed on a vote of 3-2. | Vote summary |
| Date | Location | Action |
|---|---|---|
| 02/27/2025 | Senate | Senate Committee on State, Veterans, & Military Affairs Postpone Indefinitely |
| 02/05/2025 | Senate | Introduced In Senate - Assigned to State, Veterans, & Military Affairs |