Overtime pay deduction: What workers need to know for tax season

Donald Trump’s proposal to eliminate overtime tax has ignited chatter.
MiBolsilloColombia on MSN

Overtime pay is now tax-deductible: Are you eligible for the new $12,500 break?

The OBBBA law created a new tax deduction for overtime pay. Find out if you're eligible, how much you can deduct, and how to report it on your 2025 return.
Journal of Accountancy

IRS releases FAQs on qualified overtime pay deduction under H.R. 1

An IRS fact sheet explains when overtime compensation qualifies for the H.R. 1 deduction and how Fair Labor Standards Act rules apply, including for federal employees.
Accounting Today

IRS offers guidance on overtime deduction ahead of tax season

The Internal Revenue Service and the Treasury released a set of questions and answers on the new deduction for overtime pay ...
JD Supra

Employer Compliance Update: Qualified Overtime and Tip Reporting After the One, Big, Beautiful Bill Act

The One, Big, Beautiful Bill Act of 2025 (OBBBA) was signed into law on July 4, 2025. While its reach is broad, this article covers new employer ...
KCCI Des Moines

Think all your overtime pay will be tax free? Think again

Many Americans who work overtime will get a break on their taxes for the next few years — but it may not be as hefty as they think.Congressional Republicans sought to fulfill President Donald Trump’s ...
JD Supra

The Auto Dealer’s Guide to New “No Tax on Overtime” Rules: Key Tips to Avoid Surprises Under the Hood

Auto dealerships might be surprised by some important nuances in the “No Tax on Overtime” rules that rolled out nationwide last year, and now is ...