Expands the permitted deductions to an individual’s adjusted gross income under GS 105-153.5(b) to include: (1) overtime compensation paid under Section 206 and 207 of the federal Fair Labor Standard Act; (2) up to $2,500 in bonus pay (defined); and (3) tips that are required to be reported to the taxpayer’s employer by the IRS Code. Allows married couples filing jointly to individually qualify for the bonus and overtime deductions.  Requires taxpayers to provide any information required by the Secretary of the Treasury pertaining to bonus and overtime pay. Effective for taxable years beginning on or after January 1, 2025.

Statutes affected:
Filed: 105-153.5
Edition 1: 105-153.5