Plain English
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No Tax On Overtime 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.
Market Impact Map
Action Timeline
2025-03-13
Read twice and referred to the Committee on Finance.
2025-03-13
Introduced in Senate
Full Bill Text
119 S1046 IS: No Tax On Overtime Act of 2025 U.S. Senate 2025-03-13 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. II 119th CONGRESS 1st Session S. 1046 IN THE SENATE OF THE UNITED STATES March 13, 2025 Mr. Hawley introduced the following bill; which was read twice and referred to the Committee on Finance 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 No Tax On Overtime 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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