Do I include my SSA Disability monthly income in my Gross Income for MN No tax qualification?

[xmasbaby0]

You enter your SSA1099 on your federal return.  Information flows from the federal returns to the state return.   The software will follow your state's rules regarding the Social Security.    MN is one of nine states that taxes Social Security.

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

[SabrinaD2]

It depends. In Minnesota, Social Security Disability (SSA Disability) income is generally not included in your gross income for state tax purposes if it is not taxable at the federal level. Minnesota offers a means-tested income tax subtraction for Social Security benefits, including disability benefits. Here are the key details:

• For tax year 2024, the subtraction begins to phase out at $105,380 of adjusted gross income (AGI) for married joint returns and $82,190 for single/head of household returns
• If your AGI is below these thresholds, you may not pay state income tax on your Social Security benefits
• For most filers, a taxpayer’s subtraction is reduced by 10 percent for each $4,000 of AGI (or fraction of $4,000) above the phaseout. 
  • For example, a married taxpayer with $115,000 of AGI would receive a subtraction for 80 percent of the taxpayer’s federally taxable Social Security benefits because the taxpayer’s AGI is two increments (or partial increments) of $4,000 above $108,320.

For more details, check out TurboTax's Tax Tips & Articles and the Minnesota House Research