Workers could deduct certain overtime pay from their taxes.
This bill would let workers keep more of their overtime pay by allowing them to deduct certain overtime earnings from their taxable income. This means less of their extra pay would go to taxes, starting with the 2025 tax year.
Currently, all overtime pay is generally taxed as regular income, and there is no specific deduction for it. If this bill becomes law, individuals would be able to deduct certain types of overtime pay from their taxable income, potentially reducing their overall tax bill starting with the 2025 tax year.
HR 4740 · 119th Congress · July 23, 2025 · AI Summary by gemini-2.5-flash · 8/10
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Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.