Michigan Treasury Issues Notice on New Income Tax Deductions for Overtime Compensation, Tips

The Michigan Department of Treasury issued a notice regarding new deductions for qualified overtime compensation and qualified tips as a result of federal income tax changes. The notice states that on July 4, 2025, Public Law 119-21, also known as the One Big Beautiful Bill Act (OB3), was signed, bringing numerous changes to the Internal Revenue Code (IRC). The notice further states that on Oct. 7, 2025, Governor Whitmer signed Public Act 24 of 2025 (2025 PA 24) which included provisions bringing Michigan tax law into alignment with certain newly enacted deductions within the IRC. The Treasury issued the notice ...