Bill > HF1115

This bill modifies Minnesota's tax code to create new income tax subtractions for several categories of earnings, specifically overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations. Under the proposed changes, overtime pay is defined as wages earned for hours worked beyond the maximum workweek under federal labor laws, while tips are those reported to employers or the IRS as required by tax regulations. Bonus pay is characterized as supplemental wage payments that are not considered regular wages, and gambling winnings are limited to those received from organizations licensed under Minnesota law. The bill also updates withholding provisions, notably exempting tip income from standard withholding requirements and making a corresponding technical amendment to the alternative minimum tax calculation. These modifications will apply to taxable years beginning after December 31, 2024, providing taxpayers with new opportunities to reduce their state income tax liability by subtracting these specific types of income from their taxable earnings.