Keep Every Extra Penny Act of 2025

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.