Minnesota bill proposes to allow a subtraction for gratuities paid to employees in individual income tax.

Minnesota HF417 amends individual income tax to allow a subtraction for gratuities paid to employees. The bill adds a new subdivision to Minnesota Statutes 2024, section 290.0132, defining gratuities as a subtraction. The definition of "gratuities" is provided in section 177.23, subdivision 9. This change will be effective for taxable years beginning after December 31, 2024.

Minnesota bill proposes to allow a subtraction for gratuities paid to employees in individual income tax.

Minnesota HF417 amends individual income tax to allow a subtraction for gratuities paid to employees. The bill adds a new subdivision to Minnesota Statutes 2024, section 290.0132, defining gratuities as a subtraction. The definition of "gratuities" is provided in section 177.23, subdivision 9. This change will be effective for taxable years beginning after December 31, 2024.