Relating to the exclusion of certain retirement income from the calculation of net income, and including retroactive applicability provisions

F. This bill relates to the exclusion of certain retirement income from the calculation of net income. Currently, a taxpayer who is disabled, who is at least years of age, or who is the surviving spouse or other specified survivor of that qualifying taxpayer may exclude a maximum of $6,000 of other retirement income ($12,000 for married couples). The bill phases in over a five-year period an increase to the retirement income exclusion referenced above. The base retirement income exclusion amount for single filers ($6,000) and married filers ($12,000) increases for tax years beginning in 2021, 2022, 2023, and 2024 by percent, percent, percent, and percent, respectively. For tax years beginning in 2025 or later, the retirement income exclusion is $12,000 for single filers and $24,000 for married filers. The bill does not affect the current exclusion of military retirement income. The bill applies retroactively to January 1, 2021, for tax years beginning on or after that date.