# 119-hr-561: Overtime Pay Tax Relief Act of 2025

119-hr-561, Overtime Pay Tax Relief Act of 2025, is a 119th Congress bill sponsored by Rep. Bacon, Don [R-NE-2] (R-NE); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-hr-561
- 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-561
- Congress: 119
- Title: Overtime Pay Tax Relief Act of 2025
- Status: introduced
- Introduced: 2025-01-20
- Sponsor: Rep. Bacon, Don [R-NE-2] (R-NE)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Creates a temporary tax deduction for overtime compensation.** This bill would let eligible workers deduct a portion of overtime pay from taxable income, with limits on how much and who qualifies. - Workers: Employees who earn overtime could deduct up to 20% of overtime relative to their regular wages from the same employer. The break applies only to amounts received through 2029. - Income limits: The deduction phases out based on adjusted gross income with thresholds ranging from $100,000 to $200,000 depending on filing status. - Non-itemizers: People who do not itemize deductions could still claim this as an above-the-line deduction. - Employers and payroll: The Treasury would need to update withholding tables and payroll procedures so the overtime deduction is reflected in withholding.

## Provisions PRIA read

- Lower taxes on overtime pay: benefit, high. If enacted, workers could deduct some overtime pay from income. You could deduct the smaller of your overtime pay or 20% of your other wages from the same employer, and only overtime required by federal law would count. You would qualify only if your AGI is at or below $200,000 (married filing join…
- Paycheck withholding for overtime deduction: benefit, medium. If enacted, Treasury would update paycheck withholding to reflect the new overtime deduction. This could raise take-home pay during the year for eligible workers. Employers would follow new tables for pay received after enactment. This update would not apply to pay received after December 31, 2029.

## Related bills

- 119-hr-9237: Take Care of America’s Veterans Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-4393: DIGNIDAD (Dignity) Act of 2025
- 119-hr-5442: Inspired to Serve Act of 2025
- 119-hr-6976: Duty Status Reform Act
- 119-hr-2913: Ukraine Support Act

## Sources
- [119-hr-561 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/561)

## Related
- [119-hr-9237: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-hr-9237)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-4393: DIGNIDAD (Dignity) Act of 2025](https://policyrisk.com/legislation/119-hr-4393)
- [119-hr-5442: Inspired to Serve Act of 2025](https://policyrisk.com/legislation/119-hr-5442)
- [119-hr-6976: Duty Status Reform Act](https://policyrisk.com/legislation/119-hr-6976)
- [119-hr-2913: Ukraine Support Act](https://policyrisk.com/legislation/119-hr-2913)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-561 (as of 2025-12-21).