This bill removes overtime pay from the taxable income that workers must report, allowing them to keep more of their earnings.
Keep Every Extra Penny Act of 2025This bill excludes from gross income for federal income tax purposes overtime compensation paid for hours worked in excess of 40 hours per week (as required by the Fair Labor Standards Act of 1938). Under current law, overtime compensation paid to a taxpayer is included in gross income for purposes of calculating federal income taxes.
