No Tax On Overtime Act of 2025

Bill 119 s 1046, also known as the Overtime Pay Tax Exclusion Act, is a proposed piece of legislation that aims to amend the Internal Revenue Code of 1986. The main objective of this bill is to exclude overtime compensation from being considered as gross income for the purpose of income tax calculations.

If passed, this bill would mean that individuals who receive overtime pay for working additional hours beyond their regular work schedule would not have to include this extra income when calculating their taxable income. This would effectively reduce the amount of income subject to taxation, providing some relief for individuals who work overtime to make ends meet or earn extra income.

The bill is designed to provide a financial benefit to workers who put in extra hours on the job, recognizing the additional time and effort they put in to earn overtime pay. By excluding this compensation from gross income, the bill aims to provide some tax relief for these individuals and potentially incentivize employers to offer more overtime opportunities. Overall, the Overtime Pay Tax Exclusion Act seeks to address the issue of taxation on overtime compensation and provide some financial relief for individuals who work extra hours to earn additional income. If passed, this bill could have a positive impact on workers who rely on overtime pay to supplement their earnings.