NebraskaNebraska tax returns could exclude qualifying overtime pay
For tax years starting in 2025 or later, individuals could subtract federally covered overtime pay from income when figuring Nebraska income tax, if it is included in federal income.
What it does
Individuals could subtract qualifying overtime pay from income when figuring Nebraska income tax, if the pay is included in their federal income.
Argument forWorkers whose federally covered overtime is included in their federal income could owe less Nebraska income tax on that pay.
Argument againstWorkers with qualifying overtime could receive a tax break that workers earning the same amount through other types of pay would not receive.
More detail
Individuals could subtract qualifying overtime pay from income when figuring Nebraska income tax. This applies to individuals who receive qualifying overtime compensation. The pay must be covered by federal overtime rules and included in federal adjusted gross income. The subtraction would apply to tax years beginning on or after January 1, 2025.
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Where it stands
- Introduced
- Postponed indefinitely
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17Indefinitely postponedPostponed indefinitely
- Feb 18Spivey name added
- Jan 7Title printed. Carryover bill
- 2025
- Mar 5Notice of hearing for March 14, 2025
- Jan 13Referred to Revenue CommitteeMinor
- Jan 9Date of introductionIntroduced
Taxes & BudgetEconomy & Jobs