New Bill Could Eliminate Tip and Overtime Taxes in North Carolina
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North Carolina lawmakers introduced a bill Wednesday that could eliminate state income taxes on tips, overtime, and certain bonus pay.
House Bill 11, titled “No Tax on Tips, Overtime, Bonus Pay,” was filed on Jan. 29 and passed its first reading the following day. According to WBTV, the legislation would remove state taxes on tips and overtime earnings and allow a tax deduction for bonuses up to $2,500.
If passed, the bill would take effect for taxable years beginning Jan. 1, 2025.
