Text: SF00058 Text: SF00060 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, subsection 13, Code 2001, is
1 2 amended to read as follows:
1 3 13. a. Subtract, to the extent included, the amount of
1 4 additional social security benefits taxable under the Internal
1 5 Revenue Code for tax years beginning on or after January 1,
1 6 1994, but before January 1, 2003. The amount of social
1 7 security benefits taxable as provided in section 86 of the
1 8 Internal Revenue Code, as amended up to and including January
1 9 1, 1993, continues to apply for state income tax purposes for
1 10 tax years beginning on or after January 1, 1994, but before
1 11 January 1, 2003.
1 12 b. Subtract, to the extent included after the subtraction
1 13 in paragraph "a", the following:
1 14 (1) For tax years beginning in the 2001 calendar year,
1 15 one-third of taxable social security benefits received.
1 16 (2) For tax years beginning in the 2002 calendar year,
1 17 two-thirds of taxable social security benefits received.
1 18 c. Married taxpayers, who file a joint federal income tax
1 19 return and who elect to file separate returns or who elect
1 20 separate filing on a combined return for state income tax
1 21 purposes, shall allocate between the spouses the amount of
1 22 benefits subtracted under paragraphs "a" and "b" from net
1 23 income in the ratio of the social security benefits received
1 24 by each spouse to the total of these benefits received by both
1 25 spouses.
1 26 d. Subtract, to the extent included, the amount of social
1 27 security benefits taxable under section 86 of the Internal
1 28 Revenue Code for tax years beginning on or after January 1,
1 29 2003.
1 30 Sec. 2. APPLICABILITY DATE. This Act applies
1 31 retroactively to January 1, 2001, for tax years beginning on
1 32 or after that date.
1 33 EXPLANATION
1 34 This bill exempts from the state individual income tax all
1 35 social security benefits received by the taxpayer for tax
2 1 years beginning on or after January 1, 2003. Prior to this
2 2 date, the tax on social security benefits is phased out. One-
2 3 third is exempt for tax years beginning in the 2001 calendar
2 4 year, and two-thirds is exempt for tax years beginning in the
2 5 2002 calendar year. The bill applies retroactively to January
2 6 1, 2001, for tax years beginning on or after that date.
2 7 LSB 1455SV 79
2 8 mg/cf/24
Text: SF00058 Text: SF00060 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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