Minneslate Logo

SF2102 (Legislative Session 94 (2025-2026))

Availability removal to claim the working family credit with an ITIN

AI Generated Summary

This bill, Minnesota Senate File No. 2102, proposes an amendment to Minnesota Statutes 2024, Section 290.0671, which governs the Working Family Credit (a tax credit for low-income workers).

Key Change:

  • Removes eligibility for taxpayers using an Individual Taxpayer Identification Number (ITIN) to claim the Working Family Credit.
    • Currently, individuals who qualify for the federal Earned Income Tax Credit (EITC) are generally eligible for the state-level Working Family Credit.
    • This bill eliminates that eligibility for individuals who file taxes with an ITIN (a number typically used by undocumented immigrants, foreign nationals, and others who cannot obtain a Social Security Number).

Other Provisions Preserved:

  • The credit amount is based on a percentage of earned income.
  • The phase-out of the credit remains as currently structured.
  • The credit continues to increase for taxpayers with children.
  • Allocation of the credit for residents with income partially exempt from Minnesota state tax (such as military pay and certain income earned on Indian reservations) remains unchanged.

Impact:

  • If passed, individuals and families without a Social Security Number (SSN) but who file taxes using an ITIN will no longer be able to claim the Minnesota Working Family Credit, potentially reducing their tax refunds and increasing tax liability.

This bill has been introduced and referred to the Senate Taxes Committee for consideration.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025HouseFloorActionReferred toTaxes
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies eligibility for taxpayers between ages 19 and 65 without qualifying children."
      ],
      "removed": [
        "Eliminates availability to claim the working family credit with an ITIN."
      ],
      "summary": "This bill amends provisions related to the working family credit under Minnesota Statutes 290.0671, subdivision 1.",
      "modified": [
        "Adjusts criteria based on section 32 of the Internal Revenue Code."
      ]
    },
    "citation": "290.0671",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill affects the phaseout provisions of the working family credit in conjunction with section 290.0661, subdivision 4.",
      "modified": [
        "Phases out credit jointly with provisions in section 290.0661."
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References exclusions for military pay not subject to state tax as per section 290.0132, subdivisions 11 and 12.",
      "modified": [
        "Clarifies what is considered earned income not subject to Minnesota state tax."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subdivisions 11 and 12"
  }
]

Sponsors