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Tax Relief for Overtime Pay: Deduction up to 20% of Regular Wages

This bill amends the Internal Revenue Code to establish a deduction for certain overtime payments required under the Fair Labor Standards Act. The deduction equals the amount of overtime compensation received, not exceeding 20% of the individual's other wages from the same employer. This provision is set to expire after December 31, 2029.
Key points
Allows a tax deduction for overtime pay, capped at 20% of other wages from the same employer.
No deduction is allowed if Adjusted Gross Income (AGI) exceeds $100,000 ($200,000 for joint filers, $150,000 for heads of households).
The deduction is available to taxpayers who do not itemize their deductions.
The Secretary of the Treasury must modify withholding tables to take this deduction into account.
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Additional Information
Overtime Pay Tax Relief Act of 2024
Print number: HR 9799
Sponsor: Rep. Bacon, Don [R-NE-2]
Process start date: 2024-09-25