What This Bill Does · Plain English
Summary · Congress.gov
Keep Every Extra Penny Act of 2025 This bill excludes from gross income for federal income tax purposes overtime compensation paid for hours worked in excess of 40 hours per week (as required by the Fair Labor Standards Act of 1938). Under current law, overtime compensation paid to a taxpayer is included in gross income for purposes of calculating federal income taxes.
Action Timeline
2025-01-15
Referred to the House Committee on Ways and Means.
2025-01-15
Introduced in House
2025-01-15
Introduced in House
Frequently Asked Questions
Did HR.405 pass?
HR.405 is still alive. Current stage: COMMITTEE. Pass likelihood: 39%.
What does HR.405 do?
Keep Every Extra Penny Act of 2025 This bill excludes from gross income for federal income tax purposes overtime compensation paid for hours worked in excess of 40 hours per week (as required by the Fair Labor Standards Act of 1938). Under current law, overtime compensation paid to a taxpayer is included in gross income for purposes of calculating federal income taxes.
Who sponsored HR.405?
HR.405 was sponsored by Russ Fulcher (R-Idaho).
Full Bill Text
119 HR 405 IH: Keep Every Extra Penny Act of 2025 U.S. House of Representatives 2025-01-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 405 IN THE HOUSE OF REPRESENTATIVES January 15, 2025 Mr. Fulcher (for himself and Mr. Rulli ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to exclude overtime compensation from gross income for purposes of the income tax. 1. Short title This Act may be cited as the Keep Every Extra Penny Act of 2025 . 2. Exclusion of overtime compensation from gross income (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Overtime compensation Gross income shall not include overtime compensation required under section 7 of the Fair Labor Standards Act of 1938. . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Overtime compensation. . (c) Effective date The amendments made by this section shall apply to amounts received after the date of the enactment of this Act.
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