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.

The IRS has released a set of FAQs to answer questions about eligibility, reporting, and limits for the new, temporary ...

"No Tax on Overtime" – Do You Qualify?

An IRS fact sheet explains when overtime compensation qualifies for the H.R. 1 deduction and how Fair Labor Standards Act ...

Among other employment measures, July’s One Big Beautiful Bill Act gives FLSA non-exempt workers a limited ability to deduct overtime pay from their federal taxes, retroactive to July 1, 2025.

President Donald Trump's "One Big Beautiful" bill, signed into law on July 4, locked in his first-term tax cuts set to expire in 2025 while also introducing a slate of new breaks. A new calculator ...

Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks. IRS gives some very specific examples in ...

Deduction for overtime pay and tipped income: For tax years 2025 -2028, the OBBBA allows employees to take an above-the-line tax deduction on qualified overtime pay and qualified tips. Employer ...

The IRS won’t require employers to separately report tips and overtime in 2025, which may be confusing for employees. New IRS guidance can help taxpayers figure the deductions. The IRS has released ...