I 
119TH CONGRESS 
1ST SESSION H. R. 3118 
To amend the Internal Revenue Code of 1986 to allow a deduction for 
qualified overtime compensation. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 30, 2025 
Mr. MORAN 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 allow a 
deduction for qualified overtime compensation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Tax on Overtime 
Act’’. 
SEC. 2. NO TAX ON OVERTIME. 
(a) DEDUCTION ALLOWED.—Part VII of subchapter 
B of chapter 1 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the fol-
lowing new section: 
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‘‘SEC. 224. QUALIFIED OVERTIME COMPENSATION. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the qualified overtime com-
pensation received during the taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MAXIMUM HOURS.—For purposes of deter-
mining the amount of the deduction allowed under 
subsection (a), the amount of qualified overtime 
compensation taken into account under subsection 
(a) for any taxable year shall not exceed the amount 
of such compensation which relates to not more than 
300 hours of service. 
‘‘(2) JOINT RETURNS.—In the case of a joint 
return, paragraphs (1) and (2) shall be applied sepa-
rately with respect to the qualified overtime com-
pensation of each spouse. 
‘‘(3) PHASEOUT
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.—The amount of the deduc-
tion under subsection (a) (after the application of 
paragraphs (1), (2), and (3)) shall be reduced by 
$100 for every $1,000 by which the modified ad-
justed gross income of the taxpayer for the taxable 
year exceeds $100,000 ($200,000, in the case of a 
joint return). 
‘‘(4) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
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adjusted gross income’ means the adjusted gross in-
come of the taxpayer for the taxable year increased 
by any amount excluded from gross income under 
section 911, 931, or 933. 
‘‘(c) QUALIFIED OVERTIME COMPENSATION.—For 
purposes of this section, the term ‘qualified overtime com-
pensation’ means overtime compensation paid to an indi-
vidual required under section 7 of the Fair Labor Stand-
ards Act of 1938 that is in excess of the regular rate (as 
used in such section) at which such individual is employed. 
‘‘(d) SOCIAL SECURITY NUMBER REQUIRED.—No 
deduction shall be allowed under this section with respect 
to qualified overtime compensation unless the taxpayer in-
cludes the social security number (as defined in section 
24(h)(7)) of the individual to whom such compensation 
was paid on the return of tax for the taxable year.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is amended by striking ‘‘and’’ at the end 
of paragraph (3), by striking the period at the end of para-
graph (4) and inserting ‘‘and’’, and by adding at the end 
the following new paragraph: 
‘‘(5) the deduction provided in section 225.’’. 
(c) REQUIREMENT TO INCLUDE OVERTIME COM-
PENSATION ON W–2.—Section 6051(a) is amended by 
striking ‘‘and’’ at the end of paragraph (16), by striking 
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the period at the end of paragraph (17) and inserting ‘‘, 
and’’, and by inserting after paragraph (17) the following 
new paragraph: 
‘‘(18) the total amount of qualified overtime 
compensation (as defined in section 225(c)).’’. 
(d) OMISSION OF CORRECT SOCIAL SECURITY NUM-
BER
TREATED
AS
MATHEMATICAL
OR
CLERICAL 
ERROR.—Section 6213(g)(2) is amended by striking 
‘‘and’’ at the end of subparagraph (U), by striking the 
period at the end of subparagraph (V) and inserting ‘‘, 
and’’, and by inserting after subparagraph (V) the fol-
lowing new subparagraph: 
‘‘(W) an omission of a correct social secu-
rity number required under section 225(d) (re-
lating to deduction for qualified overtime).’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 is amended by 
redesignating the item relating to section 224 as an item 
relating to section 225 and by inserting after the item re-
lating to section 223 the following new item: 
‘‘Sec. 224. Qualified overtime compensation.’’. 
(f) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) to take into 
account the deduction allowed under section 224 (as added 
by this Act). 
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(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
Æ 
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