Assembly Bill 461 proposes an income tax subtraction for certain qualified overtime compensation, aligning with the definition provided in the Internal Revenue Code. This bill allows claimants to subtract overtime compensation that exceeds their regular pay, provided it is reported on tax statements. The maximum subtraction is set at $12,500 per tax year for individual filers and $25,000 for those filing jointly. The bill also includes a phase-out provision where the subtraction decreases as modified federal adjusted gross income rises, with specific thresholds for individual and joint filers.

Additionally, the bill amends current law regarding the definition of income for the homestead credit by including the newly created subtraction for qualified overtime compensation. This change will take effect for taxable years beginning after December 31, 2024. The bill emphasizes the requirement for claimants to include their social security number on their tax returns and mandates that married individuals must file jointly to qualify for the subtraction.

Statutes affected:
Bill Text: 71.52(6), 71.52