Has the “no tax on overtime” law passed at the federal level?
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No, the “no tax on overtime” proposal has not passed into law in the United States. While various legislators have introduced bills aiming to remove federal taxes from overtime income, none have completed the required legislative process. To become law, such a bill must pass both chambers of Congress and be signed by the President. Since that has not occurred, overtime pay remains fully taxable. Any future changes would require new legislation, debate, and IRS implementation before taking effect.
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