Overtime wages not taxable under new bill
Illinois residents who work overtime would find some tax relief under recently filed legislation that would exempt overtime wages from the state income tax.
Senate Bill 3695 would create a deduction on any overtime wages earned in Illinois. Wages earned in excess to a taxpayer’s regular monthly or weekly salary would be exempt from the state income tax.
The state income tax on overtime wages would still be withheld from an individual’s paycheck; however, when that person goes to file their taxes for that year, they would receive a deduction equal to the amount of taxes paid on overtime wages.
Supporters of the measures say it’s the least that can be done for hard-working Illinoisans who already face high tax burdens...