State income tax could be eliminated for overtime pay

RALEIGH — Hourly workers in North Carolina could soon see a tax cut. House Bill 490 would eliminate the state income tax on overtime and up to $2,500 for bonus pay.

“There’s not a huge incentive for me to work to work the overtime hours,” said Jamie Harrington, who is an hourly employee.

Harrington and her family are keeping a close eye on a bill in Raleigh that could result in more money come tax season for any extra hours she puts in.

A couple hundred dollars a year for us would be huge for groceries and that’s just our family,” she said. “Imagine everyone else in the state.”

North Carolina state Rep. John Bell, R-Wayne, sponsored the bill and says it will help people who pick up extra shifts.

“The more money they can have in their pocket, the more they’re able to provide for their families, especially in a time where you got inflation rates that have skyrocketed,” he said. “I don’t know anything that costs less this year than it did last year.”

Citizens for Tax Reform founder Bill Graham has been pushing this for years. He says he was inspired by his old work in Cannon Mills.

“This would provide an incentive for employees to earn an extra buck and keep more money for their families,” he said. “It will also benefit employers by having experienced people stay on the job longer.”

Bell says the tax cut could become part of the final version of the budget.

VIDEO: NC man fights off bear to protect dog

NC man fights off bear to protect dog

©2023 Cox Media Group