Keep Every Extra Penny Act of 2025

This bill proposes to amend the Internal Revenue Code of 1986 to exclude specific overtime compensation from an individual's gross income for federal income tax purposes. The legislation aims to exempt overtime pay earned as required under section 7 of the Fair Labor Standards Act of 1938 , thereby reducing the taxable income for those who receive such compensation. To implement this change, the bill would introduce a new section, 139J , into the Internal Revenue Code. These amendments would apply to all qualifying overtime amounts received by taxpayers on or after the date the Act is officially enacted into law.