No Tax on Overtime Act

This bill would let workers subtract their qualified overtime pay from their taxable income. “Qualified overtime pay” means the extra pay required by federal law for working beyond normal hours, above your regular rate.

Key points:

• Who is affected: Workers who earn overtime under federal rules; on a joint return, each spouse’s overtime is counted separately.
• What changes: You could deduct your qualified overtime pay, but only up to the amount tied to 300 hours of overtime in a year. The deduction shrinks as income rises: it drops by $100 for every $1,000 of modified adjusted gross income over $100,000 (or over $200,000 for joint returns). To claim it, you must include a Social Security number on your tax return.
• When: The provided text does not specify when this would take effect.