arrow_back Back to App

Overtime Pay Tax Relief: More Money for Your Hard Work

This bill introduces a new tax deduction for individuals earning overtime pay. It allows you to deduct a portion of your overtime earnings from your taxable income, potentially leaving more money in your pocket. These changes will take effect starting in 2026.
Key points
You can deduct up to $10,000 ($20,000 for joint filers) of your overtime earnings from your taxable income.
The deduction amount will be reduced if your income exceeds $100,000 ($200,000 for joint filers).
This applies to overtime paid at least 1.5 times the regular rate, as required by labor laws or agreements.
The changes will apply to tax years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1606
Sponsor: Sen. Marshall, Roger [R-KS]
Process start date: 2025-05-06
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Overtime Wages Tax Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1606.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-06.

What are the main provisions?

Key points include:

  • You can deduct up to $10,000 ($20,000 for joint filers) of your overtime earnings from your taxable income.
  • The deduction amount will be reduced if your income exceeds $100,000 ($200,000 for joint filers).
  • This applies to overtime paid at least 1.5 times the regular rate, as required by labor laws or agreements.
  • The changes will apply to tax years beginning after December 31, 2025.
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 Sen. Marshall, Roger [R-KS].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Labor