No Tax on Overtime Act

# No Tax on Overtime Act (HR 3118) Summary **What It Would Do** This bill would allow workers to exclude overtime pay from their taxable income, meaning overtime earnings would not be subject to federal income tax. In practice, this would reduce the amount of federal income tax owed by employees who work overtime hours. **Who It Affects** The bill primarily affects workers who regularly earn overtime pay, which could include hourly employees in manufacturing, healthcare, retail, and other industries.

It could benefit workers in any field where overtime is common, though salaried employees exempt from overtime rules would not be affected. **Current Status** HR 3118 is currently in committee and has not yet been voted on by the full House of Representatives. No companion bill has been introduced in the Senate at this time. *Note: Specific details about the bill's scope (such as how much overtime would be excluded or whether there would be income limits) were not available in the provided information.*.