Today, U.S. Senator Tommy Tuberville (R-AL) and U.S. Senator Roger Marshall (R-KS) introduced the Overtime Wages Tax Relief Act, which would provide much needed relief for overtime wage workers. This bill would create a tax deduction for overtime wages up to $10,000 for individuals and $20,000 for married couples—targeting middle-income Americans. The Wall Street Journal first reported on the bill’s introduction.
“President Trump campaigned and won on a promise to cut taxes for millions of Americans working overtime—and we are delivering on that promise,” said Sen. Tuberville. “Thousands of Alabamians put in way more than 40 hours a week in order to save for retirement, put their kids through college, and keep the trains running. They should not be punished with higher taxes for working longer hours. Alabama was the first state to pass overtime tax exemptions, and I am hopeful that the federal government will follow suit. I’m proud to join Senators Marshall, Ricketts, and Justice in helping deliver on this critical piece of President Trump’s agenda, which will put American workers first.”
“President Trump promised relief for millions of hardworking Americans, and we’re proud to help deliver on that with the Overtime Wages Tax Relief Act,” said Sen. Marshall. “Our legislation ensures Kansans keep more of their hard-earned wages and codifies a key pillar of President Trump’s pro-worker agenda as we work to pass our ‘One Big Beautiful Bill.’ It’s time to put American workers first again, and I’m proud to work with Senators Tuberville, Ricketts, and Justice to ensure we do just that.”
Joining Sens. Tuberville and Marshall in introducing the legislation are Sens. Jim Justice (R-WV) and Pete Ricketts (R-NE).
Read full text of the legislation here.
BACKGROUND:
Specifically, the Overtime Wages Tax Relief Act would:
Introduce a tax deduction for overtime wages – up to $10,000 for individuals and $20,000 for married couples,
Include phase-out eligibility based on income:
The deduction begins to phase out when income reaches $100,000 for individuals or $200,000 for married couples,
The deduction is reduced by $50 for every $1,000 in income above the threshold, similar to the Child Tax Credit,
Define overtime to include a wide range of workers such as law enforcement officers, nurses, trade workers, factory employees, and other eligible professions, and
Require employers to report overtime earnings to ensure transparency and accuracy in claiming the deduction.
