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Overtime Tax Deduction: More Money in Your Pocket

This bill introduces a new tax deduction allowing you to subtract a portion of your overtime pay from your taxable income. This means you'll pay less in taxes on your overtime earnings, potentially increasing your net income. These changes will take effect starting in 2025.
Key points
You can deduct overtime pay from your taxes, reducing your income tax.
The deduction applies to a maximum of 300 hours of overtime per year.
The deduction will be gradually reduced for higher earners: above $100,000 for single filers and $200,000 for joint filers.
To claim the deduction, your Social Security number must be included on your tax return.
Employers will be required to report the total amount of qualified overtime compensation on your W-2 form.
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Status: Introduced
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Additional Information
Print number: 119_HR_3118
Sponsor: Rep. Moran, Nathaniel [R-TX-1]
Process start date: 2025-04-30
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

No Tax on Overtime Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3118.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-04-30.

What are the main provisions?

Key points include:

  • You can deduct overtime pay from your taxes, reducing your income tax.
  • The deduction applies to a maximum of 300 hours of overtime per year.
  • The deduction will be gradually reduced for higher earners: above $100,000 for single filers and $200,000 for joint filers.
  • To claim the deduction, your Social Security number must be included on your tax return.
  • Employers will be required to report the total amount of qualified overtime compensation on your W-2 form.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Moran, Nathaniel [R-TX-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Labor