0
0
0
To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.
1/21/2025, 9:20 AM
Summary of Bill HR 561
Bill 119 HR 561, also known as the Overtime Pay Tax Deduction Act, aims to amend the Internal Revenue Code of 1986 to create a new deduction for certain overtime payments. The bill proposes that individuals who receive overtime pay for working more than 40 hours in a week would be eligible for a tax deduction on that additional income.
The purpose of this legislation is to provide relief for workers who put in extra hours to support themselves and their families. By allowing a deduction for overtime pay, the bill seeks to incentivize employers to offer more overtime opportunities and compensate employees fairly for their hard work.
If passed, this bill would impact individuals who work overtime in a wide range of industries, from healthcare and retail to manufacturing and hospitality. The deduction would apply to both hourly and salaried employees who exceed the standard 40-hour workweek. Supporters of the Overtime Pay Tax Deduction Act argue that it would help alleviate financial burdens on working families and encourage economic growth by putting more money back into the pockets of hardworking Americans. Critics, however, may raise concerns about the potential impact on government revenue and the complexity of implementing and enforcing the new deduction. Overall, Bill 119 HR 561 represents an effort to address the challenges faced by workers who rely on overtime pay to make ends meet. As the legislation moves through the legislative process, it will be important to consider the potential benefits and drawbacks of this proposed tax deduction for overtime payments.
The purpose of this legislation is to provide relief for workers who put in extra hours to support themselves and their families. By allowing a deduction for overtime pay, the bill seeks to incentivize employers to offer more overtime opportunities and compensate employees fairly for their hard work.
If passed, this bill would impact individuals who work overtime in a wide range of industries, from healthcare and retail to manufacturing and hospitality. The deduction would apply to both hourly and salaried employees who exceed the standard 40-hour workweek. Supporters of the Overtime Pay Tax Deduction Act argue that it would help alleviate financial burdens on working families and encourage economic growth by putting more money back into the pockets of hardworking Americans. Critics, however, may raise concerns about the potential impact on government revenue and the complexity of implementing and enforcing the new deduction. Overall, Bill 119 HR 561 represents an effort to address the challenges faced by workers who rely on overtime pay to make ends meet. As the legislation moves through the legislative process, it will be important to consider the potential benefits and drawbacks of this proposed tax deduction for overtime payments.
Congressional Summary of HR 561
Overtime Pay Tax Relief Act of 2025
This bill allows a tax deduction for overtime compensation received by an individual, subject to income limitations, through 2029. The amount of the deduction may not exceed 20% of the individual’s regular wages from the same employer. Further, the deduction is not allowed for an individual with adjusted gross income exceeding $100,000 (or $150,000 for a head of the household and $200,000 for a married couple filing a joint return).
Current Status of Bill HR 561
Bill HR 561 is currently in the status of Bill Introduced since January 20, 2025. Bill HR 561 was introduced during Congress 119 and was introduced to the House on January 20, 2025. Bill HR 561's most recent activity was Referred to the House Committee on Ways and Means. as of January 20, 2025
Bipartisan Support of Bill HR 561
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 561
Primary Policy Focus
Alternate Title(s) of Bill HR 561
To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.
To amend the Internal Revenue Code of 1986 to establish a deduction for certain overtime payments.
Comments
Sponsors and Cosponsors of HR 561
Latest Bills
To amend the FISA Amendments Act of 2008 to extend the authorities of title VII of the Foreign Intelligence Surveillance Act of 1978 through April 30, 2026, and for other purposes.
Bill HR 8322April 17, 2026
To modify the governmentwide financial management plan, and for other purposes.
Bill HR 8340April 17, 2026
To amend title 17, United States Code, to establish sovereign ownership rights in unique likeness for U.S. citizens, to protect against unauthorized digital replications and abuses, and for other purposes.
Bill HR 8323April 17, 2026
To authorize a pilot program under section 258 of the National Housing Act to establish an automated process for providing additional credit rating information for mortgagors and prospective mortgagors under certain mortgages.
Bill HR 8318April 17, 2026
To amend the Higher Education Act of 1965 to remove from a borrower's credit history the record of default on a defaulted loan made, insured, or guaranteed under title IV of such Act upon repayment of the full amount due on such loan, and for other purposes.
Bill HR 8351April 17, 2026
To establish a prohibition on fees related to religious participation, and for other purposes.
Bill HR 8353April 17, 2026
To provide concealed carry privileges to qualified special operators.
Bill HR 8332April 17, 2026
To amend the Internal Revenue Code of 1986 to allow the deduction of taxes and State-mandated surcharges included on gas or electric utility bills.
Bill HR 8350April 17, 2026
To address the challenges of providing child care opportunities for military families, and for other purposes.
Bill HR 8336April 17, 2026
Recognizing and honoring National Mushroom Day and the contributions of Chester and Berks Counties to the national mushroom industry and to healthy diets.
Bill HRES 1184April 17, 2026