A free $1000? Not quite. Here’s how the new instant tax deduction works

A free $1000? Not quite. Here’s how the new instant tax deduction works

A major tax shake-up means you’ll be able to claim up to $1000 in work-related expenses without having to keep receipts.

Governor Ivey Signs HB527 Into Law, Providing Overtime Tax Deduction

MONTGOMERY, AL — Governor Kay Ivey signed House Bill 527 into law, establishing a new income tax deduction for qualified overtime compensation. The legislation, sponsored by James Lomax and carried in the Senate by Arthur Orr, allows eligible taxpayers to deduct up to $1,000 in overtime pay from their state income taxes. The deduction will apply to tax years 2026 through 2028. As previously reported, the law also includes a two-month suspension …