This bill amends Minnesota Statutes to provide specific subtractions from individual income for various types of earnings, including overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations. New subdivisions are added to section 290.0132, defining these terms and establishing that they qualify as subtractions from taxable income. The definitions clarify that overtime pay includes compensation for hours worked beyond the maximum workweek, tips are amounts reported to employers or the IRS, bonuses are supplemental wage payments, and winnings are from licensed gambling organizations. Each of these provisions is effective for taxable years beginning after December 31, 2024.

Additionally, the bill modifies withholding provisions in sections 290.091 and 290.92. It removes previous language regarding the withholding of tips and introduces a new subdivision that exempts tip income from withholding requirements. The amendments aim to streamline the tax process for individuals receiving these types of income and ensure that the withholding aligns with the new definitions and exemptions. The effective date for these changes is also set for taxable years starting after December 31, 2024.

Statutes affected:
Introduction: 290.0132, 290.091, 290.92