“To amend the Internal Revenue Code of 1986 to allow a deduction for qualified overtime compensation.”
No CRS summary available for this bill.
This section establishes an above-the-line deduction under new IRC section 224 for qualified overtime compensation (i.e., overtime pay required under section 7 of the Fair Labor Standards Act of 1938 in excess of an employee's regular rate), limited to the amount attributable to 300 hours of service per taxpayer (applied separately for each spouse on joint returns) and phased out by $100 for every $1,000 of modified adjusted gross income over $100,000 ($200,000 for joint returns). It further (1) permits the deduction for non-itemizers under IRC section 63(b); (2) requires reporting of total qualified overtime compensation on Form W-2 under IRC section 6051(a)(18); (3) treats omission of the recipient's social security number as a mathematical or clerical error under IRC section 6213(g)(2)(W); and (4) directs the Treasury Secretary to modify income tax withholding tables and procedures under IRC section 3402(a). The amendments apply to taxable years beginning after December 31, 2024.