HR 405 · 119th CongressIn Committeecongress.gov ↗

Keep Every Extra Penny Act of 2025

What this bill does

AI plain-language summary

This bill would make overtime pay tax-free for federal income tax purposes. Currently, when workers get paid extra for working more than 40 hours per week, they have to pay federal income taxes on that overtime money. Under this bill, workers would not have to pay federal income taxes on overtime compensation they earn for hours worked beyond 40 hours per week.

Introduced

January 15, 2025

Policy Area

Taxation

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