This bill amends section 77-2716 of the Revised Statutes Cumulative Supplement, 2024, to introduce an income tax adjustment for overtime compensation, aiming to provide fairer tax treatment for individuals earning additional income through overtime work. The bill includes a repeal of the original section, indicating a comprehensive update to existing tax regulations. This adjustment reflects an effort to address the financial realities faced by workers who rely on overtime pay, ensuring their tax obligations are equitable and aligned with their actual income.

In addition to the provisions regarding overtime compensation, the bill allows individuals to subtract amounts received as student loan repayment assistance under the Teach in Nebraska Today Act, health insurance premiums paid by retired firefighters or law enforcement officers, and annuities from the Civil Service Retirement System. It also provides tax relief for Nebraska National Guard members by excluding income from military service-related activities. Furthermore, the bill permits individuals to reduce their federal adjusted gross income by the amount of medical debt discharged under the Medical Debt Relief Act and addresses capital gains and losses from the sale of gold or silver bullion. Notably, a new insertion allows individuals to subtract income from overtime compensation under the Fair Labor Standards Act starting January 1, 2025.

Statutes affected:
Introduced: 77-2716