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  • What to know about the No Tax on Overtime deduction
    Under the One, Big, Beautiful Bill, if you receive qualified overtime compensation, you may deduct the pay that exceeds your regular rate of pay For 2025, employers aren’t required to report qualified overtime compensation separately on Forms W-2, 1099-NEC, and 1099-MISC
  • No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025
    Maximize your tax savings with this new deduction for qualified overtime pay Available for the 2025 to 2028 tax years, this deduction can cut your taxable income by as much as $12,500 ($25,000 for joint filers) But the deduction is reduced if your income is above a certain amount
  • What is No Tax on Overtime and how does it work? | Fidelity
    No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025 It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return
  • No Tax On Overtime Explained | TaxAct
    The no tax on overtime bill was included in the One Big Beautiful Bill that President Trump signed into law in July 2025 This new law creates a first-of-its-kind tax exemption for certain overtime pay, effective beginning in tax year 2025
  • Understanding the new no-tax on overtime deduction under Code §225
    Learn how the new “no-tax on overtime” deduction under Code §225 works for tax years 2025–2028, including eligibility rules, income limits and deduction caps This article also explains IRS transition guidance, reporting relief for 2025, and what types of overtime pay qualify under the FLSA
  • How to claim the new OBBBA overtime deduction
    Contributed by: CoryF, FreeTaxUSA Agent, Tax Pro You’ve heard about the new ”No Tax on Overtime” deduction from the One Big Beautiful Bill Act (OBBBA), and you have your 2025 W-2 Now you’re wondering what this deduction means for you and how to apply it to your tax return This article will help you understand the…
  • 2025 Overtime Deduction: New Tax Break for Extra Hours
    Learn how the 2025 overtime deduction cuts taxes on extra hours worked See who qualifies, how the deduction works, and how employees can maximize their refund
  • The 2025 Tax Bill: No Taxes on Overtime, Simplified
    President Trump signed H R 1, the One Big Beautiful Bill Act, into law on July 4, 2025 The tax provisions of the One Big Beautiful Bill Act (OBBB) include both extensions of expiring Tax Cuts and Jobs Act (TCJA) provisions and brand-new tax cuts
  • No Tax on Overtime Bill Details | H R Block®
    Starting January 1, 2025, a designated amount of qualifying overtime pay will be exempt from federal income tax under the One Big Beautiful Bill Act (OBBBA) You can deduct up to $12,500 (for most filers) or $25,000 (Married Filing Jointly) in overtime pay from your taxable income
  • Tax Pros Urge Caution in 2025 Overtime Reporting
    “It’s starting to be a little bit more of a challenge than you would initially expect,” said Wilkinson, speaking on a panel of company tax directors during the Philadelphia Tax Conference Not only that, but the IRS will not be updating the Form W-2 for 2025 to accommodate overtime reporting





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