Pennsylvania HB1586 provides a tax credit for taxes paid on overtime wages.

HB1586 amends the Tax Reform Code of 1971 to allow taxpayers to claim a credit against their personal income tax for taxes paid on overtime wages. The credit is calculated based on the amount of overtime wages and the applicable tax rate. Employers must provide necessary information to employees, and taxpayers must submit documentation to the Department of Revenue to claim the credit. The credit is fully refundable and applies to taxable years beginning after December 31, 2025.

Pennsylvania HB1586 provides a tax credit for taxes paid on overtime wages.

HB1586 amends the Tax Reform Code of 1971 to allow taxpayers to claim a credit against their personal income tax for taxes paid on overtime wages. The credit is calculated based on the amount of overtime wages and the applicable tax rate. Employers must provide necessary information to employees, and taxpayers must submit documentation to the Department of Revenue to claim the credit. The credit is fully refundable and applies to taxable years beginning after December 31, 2025.