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. It’s the least that can be done for hard-working Illinoisans who already face high tax burdens.
