H.R. 5475: No Tax on Overtime for All Workers Act
This bill is known as the No Tax on Overtime for All Workers Act. Its main purpose is to amend the tax laws regarding overtime compensation. Specifically, it allows for a tax deduction of certain overtime pay that employees receive beyond their regular wages.
Key Provisions of the Bill
- Definition of Qualified Overtime Compensation: The bill defines "qualified overtime compensation" as any overtime pay that exceeds the regular pay rate for an employee. This includes:
- Overtime pay mandated under the Fair Labor Standards Act for hours worked beyond a standard workweek.
- Any pay that exceeds the normal rate agreed upon between the employee (or their labor organization) and the employer, as long as it meets certain conditions, such as:
- The overtime work must exceed 40 hours in a week, or
- For employees governed by the Railway Labor Act, the work must be beyond scheduled hours or the maximum hours set in an agreement.
- Effective Date: The changes made by this bill will take effect for tax years beginning after December 31, 2024. This means that the tax benefits would apply in tax filings starting in the year 2025.
Potential Impact
The bill aims to offer financial relief to employees who work overtime by allowing them or their employers to deduct certain overtime payments from their taxable income. This could lead to increased take-home pay for workers who earn overtime, potentially influencing work patterns or wage negotiations between employers and employees.
Relevant Companies
- None found
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
18 bill sponsors
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TrackNicole Malliotakis
Sponsor
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TrackDon Bacon
Co-Sponsor
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TrackRobert Bresnahan
Co-Sponsor
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TrackNikki Budzinski
Co-Sponsor
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TrackChristopher R. Deluzio
Co-Sponsor
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TrackDebbie Dingell
Co-Sponsor
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TrackSarah Elfreth
Co-Sponsor
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TrackBrian K. Fitzpatrick
Co-Sponsor
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TrackSteven Horsford
Co-Sponsor
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TrackThomas H. Kean, Jr.
Co-Sponsor
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TrackNick LaLota
Co-Sponsor
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TrackMichael Lawler
Co-Sponsor
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TrackRyan Mackenzie
Co-Sponsor
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TrackJosh Riley
Co-Sponsor
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TrackChristopher H. Smith
Co-Sponsor
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TrackThomas R. Suozzi
Co-Sponsor
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TrackEmilia Strong Sykes
Co-Sponsor
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TrackEugene Vindman
Co-Sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Sep. 18, 2025 | Introduced in House |
| Sep. 18, 2025 | Referred to the House Committee on Ways and Means. |
Corporate Lobbying
2 companies lobbying
