H.R. 3118
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to allow a deduction for qualified overtime compensation.
IN THE HOUSE OF REPRESENTATIVES · April 30, 2025 · Sponsor: Mr. Moran · Committee: Committee on Ways and Means
Table of contents
Sec. 224. Qualified overtime compensation.
- (a) In general
- There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year.
- In general
- (b) Limitations
- (1) Maximum hours
- For purposes of determining the amount of the deduction allowed under subsection (a), the amount of qualified overtime compensation taken into account under subsection (a) for any taxable year shall not exceed the amount of such compensation which relates to not more than 300 hours of service.
- (2) Joint returns
- In the case of a joint return, paragraphs (1) and (2) shall be applied separately with respect to the qualified overtime compensation of each spouse.
- (3) Phaseout based on modified adjusted gross income
- The amount of the deduction under subsection (a) (after the application of paragraphs (1), (2), and (3)) shall be reduced by $100 for every $1,000 by which the modified adjusted gross income of the taxpayer for the taxable year exceeds $100,000 ($200,000, in the case of a joint return).
- (4) Modified adjusted gross income
- For purposes of this subsection, the term means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
modified adjusted gross income
- For purposes of this subsection, the term means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
- (1) Maximum hours
- (c) Qualified overtime compensation
- For purposes of this section, the term
qualified overtime compensationmeans overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed.
- For purposes of this section, the term
- (d) Social security number required
- No deduction shall be allowed under this section with respect to qualified overtime compensation unless the taxpayer includes the social security number (as defined in section 24(h)(7)) of the individual to whom such compensation was paid on the return of tax for the taxable year.