Overtime Tax Proposal Looks Fairly Benign

President Trump wants to eliminate taxes on overtime. The Republican proposal would only exempt a small amount

Photo by Guido Klinge on Unsplash

President Trump had proposed eliminating taxes on overtime when he was on the campaign trail. It appears that the Republicans will allow for some of your overtime to be exempt, however, if your income it too high all of it will be taxable.

Senator Roger Marshall (R-KS) introduced a bill yesterday that would exempt up to $20,000 of overtime pay from income tax.

Single taxpayers could exempt up to $10,000 and married couples could exempt up to $20,000.

There would be a 5% reduction as income exceeds $100,000 ($200,000 for married couples) which means a single person would still get benefit up to $300,000 of income. Married couples would still get benefit up to $400,000.