"No Tax on Overtime" – Do You Qualify?

Alan West, an hourly worker at Tom Pitzer Trucking, was thrilled to learn his overtime pay might not be taxed. "No tax on overtime — a lot more money in my pocket," West said. But as tax filing season ...

President Donald Trump's "big beautiful bill" added the "no tax on overtime" deduction for 2025 returns. Certain workers can deduct up to $12,500 for single filers or $25,000 for married couples ...

You can deduct overtime whether you itemize your taxes or not, which opens this up for more folks. But this is the stickler: You may deduct the pay that exceeds regular pay, such as the "half" portion ...

Tax experts and labor leaders warn the rules are more complicated than they sound Tax experts and labor leaders warn the rules are more complicated than they sound Tax experts and labor leaders warn ...