This bill makes three modifications to the Minnesota working family credit. First, it expands the credit to single filers 21-24 years of age. Second, it modifies the amounts of earned income to which the credit applies and is phased out, and third, it modifies the percentage of earned income on which the credit is calculated, so that claimants at the lowest income levels would be eligible for larger credit amounts and the credit would extend to higher income levels. The income levels are adjusted annually for inflation.
For filers with no dependent children, the bill increases the percentage of earned income on which the credit is calculated and increases the level of earned income to which the percentage is applied and increases the percentage by which the credit phases out over the earned income threshold, but also increases the threshold amount.
For filers with dependent children, the bill increases the percentage of earned income on which the credit is calculated and reduces the level of earned income to which the percentage is applied, and then reduces the percentage by which the credit phases out over the earned income threshold and increases the threshold amount.
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