I 

118TH CONGRESS 

2D SESSION H. R. 9799 

To amend the Internal Revenue Code of 1986 to establish a deduction 

for certain overtime payments. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 25, 2024 

Mr. BACON introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a deduction for certain overtime payments. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Overtime Pay Tax Re5 lief Act of 2024’’. 

6 SEC. 2. DEDUCTION FOR OVERTIME COMPENSATION. 

7 (a) IN GENERAL.— 

8 (1) DEDUCTION ALLOWED.—Part VII of sub9 chapter B of chapter 1 of the Internal Revenue Code 

10 of 1986 is amended by redesignating section 224 as 


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1 section 225 and by inserting after section 223 the 

2 following new section: 

3 ‘‘SEC. 224. OVERTIME COMPENSATION. 

4 ‘‘(a) IN GENERAL.—There shall be allowed as a de5 duction an amount equal to so much of any overtime com6 pensation received by an individual as does not exceed 20 

7 percent of such individual’s other wages from the same 

8 employer for the taxable year. 

9 ‘‘(b) OVERTIME COMPENSATION.—For purposes of 

10 this section, the term ‘overtime compensation’ means over11 time compensation required under section 7 of the Fair 

12 Labor Standards Act of 1938. 

13 ‘‘(c) LIMITATION.—No deduction shall be allowed 

14 under subsection (a) for any taxpayer whose adjusted 

15 gross income for the taxable year exceeds— 

16 ‘‘(1) in the case of a married couple filing joint17 ly, $200,000, 

18 ‘‘(2) in the case of a head of household, 

19 $150,000, or 

20 ‘‘(3) in the case of any other individual, 

21 $100,000. 

22 ‘‘(d) TERMINATION.—No deduction shall be allowed 

23 under subsection (a) for any amounts received after De24 cember 31, 2029.’’. 


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1 (2) CONFORMING AMENDMENT.—The table of 

2 sections for part VII of subchapter B of chapter 1 

3 of such Code is amended by redesignating the item 

4 relating to section 224 as relating to section 225 

5 and by inserting after the item relating to section 

6 223 the following new item: 

‘‘Sec. 224. Overtime payments.’’. 

7 (b) DEDUCTION ALLOWED TO NON-ITEMIZERS.— 

8 Section 63(b) of the Internal Revenue Code of 1986 is 

9 amended by striking ‘‘and’’ at the end of paragraph (3), 

10 by striking the period at the end of paragraph (4) and 

11 inserting ‘‘and’’, and by adding at the end the following 

12 new paragraph: 

13 ‘‘(5) the deduction provided in section 224.’’. 

14 (c) NON-APPLICATION OF CERTAIN LIMITATIONS

15 FOR ITEMIZERS.— 

16 (1) DEDUCTION NOT TREATED AS A MISCELLA17 NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 

18 Internal Revenue Code of 1986 is amended by strik19 ing ‘‘and’’ at the end of paragraph (11), by striking 

20 the period at the end of paragraph (12) and insert21 ing ‘‘, and’’, and by adding at the end the following 

22 new paragraph: 

23 ‘‘(13) the deduction under section 224 (relating 

24 to overtime compensation).’’. 


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1 (2) DEDUCTION NOT TAKEN INTO ACCOUNT

2 UNDER OVERALL LIMITATION.—Section 68(c) of the 

3 Internal Revenue Code of 1986 is amended by strik4 ing ‘‘and’’ at the end of paragraph (2), by striking 

5 the period at the end of paragraph (3) and inserting 

6 ‘‘, and’’, and by adding at the end the following new 

7 paragraph: 

8 ‘‘(4) the deduction under section 224 (relating 

9 to overtime compensation).’’. 

10 (d) WITHHOLDING.—The Secretary of the Treasury 

11 (or the Secretary’s delegate) shall modify the tables and 

12 procedures prescribed under section 3402(a) of the Inter13 nal Revenue Code of 1986 to take into account the deduc14 tion allowed under section 224 of such Code (as added 

15 by this Act). 

16 (e) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to amounts received after the date 

18 of the enactment of this Act. 

Æ 


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