To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.

1/21/2025, 9:20 AM

Summary of Bill HR 561

Bill 119 HR 561, also known as the Overtime Pay Tax Deduction Act, aims to amend the Internal Revenue Code of 1986 to create a new deduction for certain overtime payments. The bill proposes that individuals who receive overtime pay for working more than 40 hours in a week would be eligible for a tax deduction on that additional income.

The purpose of this legislation is to provide relief for workers who put in extra hours to support themselves and their families. By allowing a deduction for overtime pay, the bill seeks to incentivize employers to offer more overtime opportunities and compensate employees fairly for their hard work.

If passed, this bill would impact individuals who work overtime in a wide range of industries, from healthcare and retail to manufacturing and hospitality. The deduction would apply to both hourly and salaried employees who exceed the standard 40-hour workweek. Supporters of the Overtime Pay Tax Deduction Act argue that it would help alleviate financial burdens on working families and encourage economic growth by putting more money back into the pockets of hardworking Americans. Critics, however, may raise concerns about the potential impact on government revenue and the complexity of implementing and enforcing the new deduction. Overall, Bill 119 HR 561 represents an effort to address the challenges faced by workers who rely on overtime pay to make ends meet. As the legislation moves through the legislative process, it will be important to consider the potential benefits and drawbacks of this proposed tax deduction for overtime payments.

Congressional Summary of HR 561

Overtime Pay Tax Relief Act of 2025

This bill allows a tax deduction for overtime compensation received by an individual, subject to income limitations, through 2029. The amount of the deduction may not exceed 20% of the individual’s regular wages from the same employer. Further, the deduction is not allowed for an individual with adjusted gross income exceeding $100,000 (or $150,000 for a head of the household and $200,000 for a married couple filing a joint return). 

 

Current Status of Bill HR 561

Bill HR 561 is currently in the status of Bill Introduced since January 20, 2025. Bill HR 561 was introduced during Congress 119 and was introduced to the House on January 20, 2025.  Bill HR 561's most recent activity was Referred to the House Committee on Ways and Means. as of January 20, 2025

Bipartisan Support of Bill HR 561

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 561

Primary Policy Focus

Alternate Title(s) of Bill HR 561

To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.
Start holding our government accountable!

Comments

Sponsors and Cosponsors of HR 561

Don Bacon
Don Bacon
Nebraska(Republican)

Latest Bills

Recognizing the importance of sleep health and expressing support for the designation of the week of March 9 through March 15, 2025, as "Sleep Awareness Week".
Bill HRES 235March 23, 2025
Expressing the sense of the House of Representatives that every person has the basic right to emergency health care, including abortion care.
Bill HRES 238March 23, 2025
Expressing support for the goals of a "NICU Baby's Bill of Rights".
Bill HRES 236March 23, 2025
Expressing support for the designation of "Zoroastrian Legacy and Heritage Month".
Bill HRES 234March 23, 2025
Raising awareness of the racial disparities in the impact of colorectal cancer on the Black community.
Bill HRES 239March 23, 2025
National Strategy for School Security Act of 2025
Bill HR 2259March 23, 2025
Improving Law Enforcement Officer Safety and Wellness Through Data Act of 2025
Bill HR 2240March 23, 2025
Of inquiry requesting the President and directing the Secretary of Education to transmit, respectively, certain documents to the House of Representatives relating to the reduction in force and other downsizing measures at the Department of Education.
Bill HRES 237March 23, 2025
Protect Social Security and Medicare Act
Bill HR 1950March 23, 2025
Delphi Retirees Pension Restoration Act
Bill HR 1895March 23, 2025