A new, bipartisan Senate bill would include the no tax provision to TWU members and other unions.
The No Tax on Overtime passed in last year’s “One Big Beautiful Bill Act” will include about three million workers who are currently ineligible for a tax deduction on overtime earnings.
“Tens of thousands of TWU members are currently ineligible for the overtime earnings tax break and the TWU will keep fighting this disparity until all of our members get what they deserve,” said TWU International President John Samuelsen. “Pro-worker lawmakers from both parties, and in both chambers, are stepping up to deliver thousands of dollars in savings every year for transport workers and their families.”
The TWU has raised the alarm consistently in recent months that workers employed by airlines, railroads, school bus companies, and motor coach carriers were ineligible for the new overtime tax deduction for up to $25,000 in earnings – a potential savings of up to $6,000 per year. The flaw comes from language in the bill that relies on an outdated definition of overtime dating back to 1938.
Approximately 80,000 TWU workers are ineligible, including airline Maintenance Technicians, commuter train Coach Cleaners, and School Bus Drivers.
The Senate bill, titled the No Tax on Overtime for All Workers Act, is a companion to House legislation that was introduced in September of last year. The Senate bill was introduced by Sen. Jim Justice (R-W.Va.) and Sen. Maria Cantwell (D-Wash.).
