Just three years ago, Alabama made history as the first state to strip income taxes from overtime pay. Yet the celebration for overtime workers was short-lived. Following the law's sunset last year, overtime earnings are once again fully subject to state income taxes, just as the cost of goods like groceries and utilities has surged 22% over the last five years in Alabama. A new legislative push — House Bill 527 — aims to provide some state overtime relief through a proposed $1,000 tax deduction. But with Alabama workers facing a tightening economy, is a capped deduction enough to offset the loss of a total exemption? We crunched the numbers to see how much this new bill actually puts back in your family's wallet.
