Bill > S1046

This bill proposes to amend the Internal Revenue Code of 1986 to exclude overtime compensation from an individual's gross income for tax purposes. Specifically, the bill would add a new section (Section 139J) to the tax code that exempts overtime pay from being counted as taxable income. Overtime compensation, as defined by the Fair Labor Standards Act of 1938, refers to the additional wages employees receive for working more than 40 hours in a standard work week, typically at a rate of 1.5 times their regular hourly wage. The changes would apply to any overtime compensation received after the date the bill is enacted into law. By removing overtime pay from taxable income, the bill aims to provide financial relief to workers who earn extra money by working additional hours, effectively allowing them to keep more of their hard-earned overtime earnings without being taxed on that additional income.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1046/all-info