No Tax on Overtime for All Workers Act
House Bill Would Eliminate Federal Income Tax on Overtime Pay for All Workers
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Creates a federal income tax deduction for certain overtime pay, which could lower some workers’ taxable income.
- Covers regular overtime required by federal wage law (the extra pay above your normal hourly rate after overtime hours).
- Also covers some “overtime-like” extra pay under pre-made worker-employer agreements, including certain transportation workers on special schedules.
- Applies starting with tax years after December 31, 2024, meaning it could affect recent and future tax returns if it becomes law.
- How much you benefit would depend on how much overtime you work and whether your extra pay fits the bill’s definitions.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
No Tax On Overtime Explained
The policy creates a federal income tax deduction for 'qualified overtime compensation' under the FLSA, capped at $12,500 for individuals. It applies only to the extra pay above regular wages (the 'half' in time-and-a-half) and phases out for those earning over $150,000.
Truckers left out of No Tax on Overtime bill
Truck drivers are currently excluded from the 'No Tax on Overtime' benefits because they are not covered by the Fair Labor Standards Act's overtime requirements. Advocacy groups are pushing for legislative fixes to ensure drivers can access the tax deduction.
ALPA Endorses No Tax on Overtime for All Workers Act
The Air Line Pilots Association announced support for the bipartisan 'No Tax on Overtime for All Workers Act' (H.R. 5475). The bill expands the overtime tax deduction to include pilots and other workers covered by the Railway Labor Act who were initially excluded.
Source Information
Document Type
Congressional Bill
Official Title
No Tax on Overtime for All Workers Act
Data Sources
Sponsor
Cosponsors
(36)Political Response
Analysis generated by AI. Always verify with official sources.