# 119-hr-3118: No Tax on Overtime Act

119-hr-3118, No Tax on Overtime Act, is a 119th Congress bill sponsored by Rep. Moran, Nathaniel [R-TX-1] (R-TX); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-3118
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3118
- Congress: 119
- Title: No Tax on Overtime Act
- Status: introduced
- Introduced: 2025-04-30
- Sponsor: Rep. Moran, Nathaniel [R-TX-1] (R-TX)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Creates a new tax deduction for qualified overtime compensation.** It lets eligible workers deduct overtime pay subject to a 300-hour cap and income-based phaseouts. - Hourly workers who receive FLSA overtime can subtract qualified overtime pay from taxable income up to the portion attributable to 300 hours of service each year. The deduction phases out as modified adjusted gross income rises above $100,000 for singles and $200,000 for joint filers. - Married couples filing jointly get the 300-hour limit applied separately to each spouse, so each spouse can qualify for their own overtime deduction up to the cap. - Taxpayers who do not itemize can claim this deduction on Form 1040, making it available to more wage earners. - Employers must report total qualified overtime on W-2s and adjust withholding rules. The law also requires an employee Social Security number on returns to claim the deduction and treats a missing correct SSN as a clerical error for audit timing.

## Provisions PRIA read

- Lower taxes on overtime pay: benefit, high. This bill would let workers deduct qualified overtime pay from taxable income. Only overtime required by federal law and paid above your regular rate would count. You could deduct no more than the portion tied to 300 overtime hours each year; on a joint return, each spouse has a separate 300-hour c…
- Lower withholding and simpler IRS corrections: benefit, low. Treasury would update paycheck withholding tables so the new overtime deduction is reflected during the year. The IRS would treat a missing Social Security number for this deduction as a math or clerical error, making it easier to fix returns. These changes would apply to tax years beginning after…
- Employers must list overtime on W-2s: cost, low. Employers would need to report each worker’s total qualified overtime pay on Form W-2. This would help employees claim the new overtime deduction. The requirement would start for tax years beginning after December 31, 2024.

## Related bills

- 119-hr-5349: TAS Act
- 119-hr-137: TCJA Permanency Act
- 119-hr-2570: Maximum Pressure Act
- 119-hr-3160: PREVAIL Act
- 119-hr-3132: CHOICE for Veterans Act of 2025
- 119-hr-1163: Prove It Act

## Sources
- [119-hr-3118 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3118)

## Related
- [119-hr-5349: TAS Act](https://policyrisk.com/legislation/119-hr-5349)
- [119-hr-137: TCJA Permanency Act](https://policyrisk.com/legislation/119-hr-137)
- [119-hr-2570: Maximum Pressure Act](https://policyrisk.com/legislation/119-hr-2570)
- [119-hr-3160: PREVAIL Act](https://policyrisk.com/legislation/119-hr-3160)
- [119-hr-3132: CHOICE for Veterans Act of 2025](https://policyrisk.com/legislation/119-hr-3132)
- [119-hr-1163: Prove It Act](https://policyrisk.com/legislation/119-hr-1163)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3118 (as of 2025-12-21).