Bill > H3173

This bill proposes changes to Massachusetts tax law regarding overtime wages by first defining "overtime wage" as wages paid to an hourly employee for working more than 40 hours per week, specifically excluding salaried employees from this definition. The bill then introduces a tax provision that allows taxpayers to deduct the total amount of overtime wages they earned during a taxable year from their state income tax calculation. This means that overtime earnings would effectively become tax-free, potentially providing a financial incentive for hourly workers who work extra hours and a potential reduction in state tax revenue. The bill amends existing sections of Chapter 62 of the Massachusetts General Laws, which governs state income taxation, by adding these new definitions and deduction provisions.

Budget and Finance

https://malegislature.gov/Bills/194/H3173