"Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the 'half' portion of 'time-and-a-half' compensation," the IRS said. The ...

Additionally, the “no tax on overtime” is a federal income tax change only. State and local income taxes still apply (unless your state separately conforms), and Social Security and Medicare taxes are ...

The Senate side of the Capitol is seen in Washington, early Monday, June 30, 2025, as Republicans plan to begin a final push to advance President Donald Trump's big tax breaks and spending cuts ...

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.

They say that the only two certainties in life are death and taxes. The recently passed “Big Beautiful Bill,” however, claims to eliminate one of those — at least for overtime hours. The budget bill, ...