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S. 4310119th CongressIn committeeLatest action Apr 15, 2026Decoded by AI · checked against the record
Official title: No Tax on Overtime for All Workers Act
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
S 4310 would make overtime wages tax-deductible for federal income tax starting Jan. 1, 2025, but payroll taxes would still apply.
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S 4310 would create a new federal income tax deduction specifically for overtime earnings, so workers would not owe federal income tax on wages earned beyond their normal hours. Under current law, overtime wages are taxed the same as regular wages. The deduction would apply to tax years beginning January 1, 2025.
The bill covers hourly workers entitled to overtime under federal labor law after 40 hours in a week, as well as workers covered by formal employer agreements such as union contracts. Railroad and airline workers, whose schedules fall under a separate federal law, are specifically included in the second group.
Workers who regularly put in overtime hours would retain a larger share of those earnings because federal income tax would no longer apply to that portion of their wages. Payroll taxes for Social Security and Medicare would still be owed on overtime pay, limiting the scope of the tax relief.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Finance.