H.R. 561, known as the "Overtime Pay Tax Relief Act of 2025," proposes to amend the Internal Revenue Code to allow workers to deduct certain overtime earnings from their taxable income. The bill states that individuals can deduct up to 20% of their overtime pay from the same...
Simple Explanation
The "Overtime Pay Tax Relief Act of 2025" is a plan that lets people pay less in taxes on the extra money they earn from working more hours, but this only helps if their total pay isn't too high and the rule is only going to last until 2029.