Social Security Benefit Subtraction

If you included Social Security or Railroad Retirement benefits in your federal adjusted gross income and meet certain income limitations, you may qualify for a Social Security Benefit Subtraction.

To claim the subtraction, complete Schedule M1M, Income Additions and Subtractions.

Subtraction Amount

Beginning with tax year 2023, there are two methods for calculating the subtraction: the “simplified method” and the “alternative method.”

Simplified Method

The simplified method allows taxpayers with adjusted gross income below $100,000 for Married Filing Jointly, or below $78,000 for Single or Head of Household, to subtract all their Social Security benefits included in adjusted gross income (AGI).

The subtraction is phased out by 10% for each $4,000 of AGI in excess of the income levels mentioned. For Married Filing Separately, the phaseout is 10% for each $2,000 of AGI over $50,000. 

Alternative Method

The alternative method allows taxpayers to continue to claim the state subtraction using a calculation similar to prior years.

The subtraction amount depends on your filing status and provisional income.

Provisional income is your gross income plus any tax-exempt interest and half of your Social Security and Tier 1 Railroad Retirement benefits. For details on how to calculate your subtraction using provisional income, see the instructions for Schedule M1M.