Us Congress 2025-2026 Regular Session

Us Congress House Bill HB561 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 561
5	5	To amend the Internal Revenue Code of 1986 to establish a deduction
6	6	for certain overtime payments.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY20, 2025
9	9	Mr. B
10	10	ACONintroduced the following bill; which was referred to the Committee
11	11	on Ways and Means
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to establish
14	14	a deduction for certain overtime payments.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘Overtime Pay Tax Re-4
19	19	lief Act of 2025’’. 5
20	20	SEC. 2. DEDUCTION FOR OVERTIME COMPENSATION. 6
21	21	(a) I
22	22	NGENERAL.— 7
23	23	(1) D
24	24	EDUCTION ALLOWED .—Part VII of sub-8
25	25	chapter B of chapter 1 of the Internal Revenue Code 9
26	26	of 1986 is amended by redesignating section 224 as 10
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29	29	•HR 561 IH
30	30	section 225 and by inserting after section 223 the 1
31	31	following new section: 2
32	32	‘‘SEC. 224. OVERTIME COMPENSATION. 3
33	33	‘‘(a) I
34	34	NGENERAL.—There shall be allowed as a de-4
35	35	duction an amount equal to so much of any overtime com-5
36	36	pensation received by an individual as does not exceed 20 6
37	37	percent of such individual’s other wages from the same 7
38	38	employer for the taxable year. 8
39	39	‘‘(b) O
40	40	VERTIMECOMPENSATION.—For purposes of 9
41	41	this section, the term ‘overtime compensation’ means over-10
42	42	time compensation required under section 7 of the Fair 11
43	43	Labor Standards Act of 1938. 12
44	44	‘‘(c) L
45	45	IMITATION.—No deduction shall be allowed 13
46	46	under subsection (a) for any taxpayer whose adjusted 14
47	47	gross income for the taxable year exceeds— 15
48	48	‘‘(1) in the case of a married couple filing joint-16
49	49	ly, $200,000, 17
50	50	‘‘(2) in the case of a head of household, 18
51	51	$150,000, or 19
52	52	‘‘(3) in the case of any other individual, 20
53	53	$100,000. 21
54	54	‘‘(d) T
55	55	ERMINATION.—No deduction shall be allowed 22
56	56	under subsection (a) for any amounts received after De-23
57	57	cember 31, 2029.’’. 24
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61	61	(2) CONFORMING AMENDMENT .—The table of 1
62	62	sections for part VII of subchapter B of chapter 1 2
63	63	of such Code is amended by redesignating the item 3
64	64	relating to section 224 as relating to section 225 4
65	65	and by inserting after the item relating to section 5
66	66	223 the following new item: 6
67	67	‘‘Sec. 224. Overtime payments.’’.
68	68	(b) DEDUCTIONALLOWED TO NON-ITEMIZERS.— 7
69	69	Section 63(b) of the Internal Revenue Code of 1986 is 8
70	70	amended by striking ‘‘and’’ at the end of paragraph (3), 9
71	71	by striking the period at the end of paragraph (4) and 10
72	72	inserting ‘‘and’’, and by adding at the end the following 11
73	73	new paragraph: 12
74	74	‘‘(5) the deduction provided in section 224.’’. 13
75	75	(c) N
76	76	ON-APPLICATION OF CERTAINLIMITATIONS 14
77	77	FORITEMIZERS.— 15
78	78	(1) D
79	79	EDUCTION NOT TREATED AS A MISCELLA -16
80	80	NEOUS ITEMIZED DEDUCTION .—Section 67(b) of the 17
81	81	Internal Revenue Code of 1986 is amended by strik-18
82	82	ing ‘‘and’’ at the end of paragraph (11), by striking 19
83	83	the period at the end of paragraph (12) and insert-20
84	84	ing ‘‘, and’’, and by adding at the end the following 21
85	85	new paragraph: 22
86	86	‘‘(13) the deduction under section 224 (relating 23
87	87	to overtime compensation).’’. 24
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91	91	(2) DEDUCTION NOT TAKEN INTO ACCOUNT 1
92	92	UNDER OVERALL LIMITATION .—Section 68(c) of the 2
93	93	Internal Revenue Code of 1986 is amended by strik-3
94	94	ing ‘‘and’’ at the end of paragraph (2), by striking 4
95	95	the period at the end of paragraph (3) and inserting 5
96	96	‘‘, and’’, and by adding at the end the following new 6
97	97	paragraph: 7
98	98	‘‘(4) the deduction under section 224 (relating 8
99	99	to overtime compensation).’’. 9
100	100	(d) W
101	101	ITHHOLDING.—The Secretary of the Treasury 10
102	102	(or the Secretary’s delegate) shall modify the tables and 11
103	103	procedures prescribed under section 3402(a) of the Inter-12
104	104	nal Revenue Code of 1986 to take into account the deduc-13
105	105	tion allowed under section 224 of such Code (as added 14
106	106	by this Act). 15
107	107	(e) E
108	108	FFECTIVEDATE.—The amendments made by 16
109	109	this section shall apply to amounts received after the date 17
110	110	of the enactment of this Act. 18
111	111	Æ
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