Overtime
All posts tagged overtime.
Can Union Workers Claim the No Tax on Overtime Deduction?
A union contract can provide generous overtime pay, but only the FLSA-required premium can support the federal OBBBA deduction. Here is how to separate the two.
W-2 Box 12 Code TT Is Wrong: How to Correct Your Overtime Deduction
A missing or inaccurate Box 12 code TT can limit the OBBBA overtime deduction. The 2026 IRS rule is to request a corrected W-2—not to invent a replacement amount.
Comp Time and No Tax on Overtime: State and Local Government Guide
For eligible state and local employees, FLSA comp time can produce qualified overtime compensation when the leave is paid or cashed out. The timing is different from ordinary overtime pay.
Can a Business Owner Claim the No Tax on Overtime Deduction?
Owning and actively managing at least 20% of a business generally makes a worker FLSA-exempt, which blocks the OBBBA overtime deduction. Smaller ownership interests require a separate analysis.
Do Federal Employees Qualify for the No Tax on Overtime Deduction?
Federal employment does not automatically qualify or disqualify you. The key is FLSA status: an SF-50 marked N generally indicates overtime eligibility, while E means exempt.
Your 2025 W-2 Has No Overtime Box: What to Do for the OBBBA Deduction
The IRS did not require separate qualified-overtime reporting on 2025 W-2s. Eligible workers can use designated statements or specific reasonable methods backed by records.
Multiple Jobs and No Tax on Overtime: How to Handle More Than One W-2
Workers with multiple jobs can determine qualified 2025 overtime using the facts and records from each employer, but the statutory overtime cap applies per return—not per W-2.
Salaried and Exempt From Overtime? Why You May Not Qualify for No Tax on Overtime
The no-tax-on-overtime deduction only applies to FLSA-required overtime pay. If you're classified as FLSA-exempt, you don't legally receive overtime — so there's nothing to deduct, no matter how many hours you work.
Does Double-Time, Holiday, or Weekend Pay Count for No Tax on Overtime?
Not all "extra" pay is deductible overtime. The OBBBA only covers the FLSA-required half of time-and-a-half — so double-time, holiday, and weekend premiums usually do not count. Here is why.
How to Calculate Your No Tax on Overtime Deduction (Only the Premium Counts)
Only the 'half' premium of time-and-a-half qualifies for the OBBBA overtime deduction — not your full overtime pay. Here's the math with 2026 examples.
OBBBA Overtime Tax Exemption: Keep More of Your Time-and-a-Half Pay in 2026
The OBBBA overtime exemption lets eligible workers deduct up to $12,500 (or $25,000 if married) in overtime wages from federal income tax through 2028. Here is who qualifies and how much you can save.