Is There Any Policy That Allows No Tax On Overtime Pay?

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Hannah

(@hannah)

Eminent Member

I’m looking for guidance on whether there are any policies, rules, or legal provisions that allow overtime pay to be exempt from taxes. If such options exist, I’d appreciate advice on how they work and who qualifies for them.

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Topic starter Posted : 08/04/2026 8:20 am

Alexander

(@alexander)

Eminent Member

The One Big Beautiful Bill Act's "No Tax on Overtime" clause permits qualified employees in the US to deduct the "half" of their time-and-a-half compensation from their federal income taxes for the years 2025–2028. This deduction is limited to federal taxes and is capped at $12,500 for individuals and $25,000 for couples.

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Posted : 08/04/2026 8:33 am