Keep Every Extra Penny Act of 2025

Hozzl · 2025-02-08T05:53:21Z

Explore the details of House Bill 405 Keep Every Extra Penny Act of 2025 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

2/8/2025, 5:53 AM

Summary of Bill HR 405

Bill 119 HR 405, also known as the Overtime Pay Tax Exclusion Act, aims to amend the Internal Revenue Code of 1986 by excluding overtime compensation from gross income for income tax purposes. This means that individuals who receive overtime pay would not have to include that additional income when calculating their taxable income.

The bill is designed to provide relief for workers who put in extra hours on the job and earn overtime pay as a result. By excluding this additional income from their taxable income, workers would potentially see a reduction in the amount of taxes they owe to the government.

Supporters of the bill argue that excluding overtime pay from gross income would provide much-needed financial relief for hardworking Americans who often rely on overtime to make ends meet. They believe that this change would help to incentivize workers to take on additional hours and contribute to the economy. Opponents of the bill may argue that excluding overtime pay from gross income could potentially reduce tax revenue for the government, leading to budgetary concerns. They may also raise concerns about the potential impact on the overall tax system and whether this change would create inequities for certain individuals or industries. Overall, Bill 119 HR 405 seeks to provide a tax benefit for workers who earn overtime pay by excluding this income from their taxable income. The bill is currently under consideration in Congress and its potential impact on the tax system and economy will continue to be debated.

Congressional Summary of HR 405

Keep Every Extra Penny Act of 2025

This bill excludes from gross income for federal income tax purposes overtime compensation paid for hours worked in excess of 40 hours per week (as required by the Fair Labor Standards Act of 1938). Under current law, overtime compensation paid to a taxpayer is included in gross income for purposes of calculating federal income taxes.

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Current Status of Bill HR 405

Bill HR 405 is currently in the status of Bill Introduced since January 15, 2025. Bill HR 405 was introduced during Congress 119 and was introduced to the House on January 15, 2025. Bill HR 405's most recent activity was Referred to the House Committee on Ways and Means. as of January 15, 2025

Bipartisan Support of Bill HR 405

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Total Number of Cosponsors

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Policy Area and Potential Impact of Bill HR 405

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Alternate Title(s) of Bill HR 405

To amend the Internal Revenue Code of 1986 to exclude overtime compensation from gross income for purposes of the income tax.To amend the Internal Revenue Code of 1986 to exclude overtime compensation from gross income for purposes of the income tax.

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