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SF2673 (Legislative Session 94 (2025-2026))

Child tax credit advance payments repeal

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify existing Minnesota tax regulations specifically focusing on individual income taxes. It seeks to eliminate advance payments of the child tax credit and update the requirements for filing Minnesota income tax returns.

Main Provisions

  • Repeal of Advance Child Tax Credit Payments: The bill proposes the removal of provisions allowing for advance payments of the child tax credit, specifically aiming to repeal Minnesota Statutes 2024, section 290.0661, subdivisions 8 and 9.

  • Income Tax Filing Requirements: The proposed changes clarify the conditions under which individuals must file Minnesota income tax returns. It states that:

    • Non-Minnesota residents are exempt from filing if their income from Minnesota sources is below a certain threshold.
    • Minnesota residents are exempt from filing if their state income, after allowable subtractions, does not exceed the filing requirements for a full-year single resident.

  • Specific Situations for Filing Returns: The bill lays out requirements for filing tax returns for decedents and by individuals who have previously chosen to receive child tax credit payments in advance.

Significant Changes to Existing Law

  • Elimination of Advance Payments: One of the key changes includes the repeal of the legal framework that allows for the advance payment of the child tax credit. This would affect taxpayers who have opted to receive these payments prior to their annual tax filings.

  • Updated Filing Requirements: Adjustments are made to clarify who needs to file state income tax returns based on residency status and income levels, potentially reducing the number of individuals required to file in Minnesota.

Relevant Terms

advance payments, child tax credit, income tax, Minnesota residents, non-residents, filing requirements, decedent's tax return, gross income levels, tax credit repeal, personal representative

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTaxes
March 19, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on who must file returns if they are receiving advanced child tax credits."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies filing requirements for individual income tax returns under section 289A.08, subdivision 1.",
      "modified": [
        "Adjusts requirements based on gross income levels."
      ]
    },
    "citation": "289A.08",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the determination of gross income derived from Minnesota sources under section 290.17.",
      "modified": [
        "Reference included for determining non-resident filing requirements."
      ]
    },
    "citation": "290.17",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references subtracted income amounts for tax filing under section 290.0132, subdivisions 12 and 15.",
      "modified": [
        "Reference included for individual resident filing requirements."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subdivisions 12 and 15"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the definition of transferees under section 270C.58, subdivision 3.",
      "modified": [
        "Definition included for filing requirements in cases of decedent's income taxes."
      ]
    },
    "citation": "270C.58",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the definition of gross income under section 290.01, subdivision 20.",
      "modified": [
        "Definition utilized for determining tax filing obligations."
      ]
    },
    "citation": "290.01",
    "subdivision": "subdivision 20"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references advanced payments of child tax credit elections under section 290.0661, subdivision 8.",
      "modified": [
        "Requirement added to file taxes if this election is made."
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 8"
  }
]

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