The overtime deduction is temporary – it only applies for the 2025 to 2028 tax years.

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The IRS won’t require employers to separately report tips and overtime in 2025, which may be confusing for employees. New IRS guidance can help taxpayers figure the deductions. The IRS has released ...

Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks. IRS gives some very specific examples in ...

The new “no tax on tips” and “no tax on overtime” deductions require additional reporting by employers and other payers. However, rather than require more reporting this late in 2025, the IRS is ...

On September 30, 2025, the U.S. Department of Labor (DOL) issued an opinion letter containing important reminders about how to calculate overtime pay for non-exempt employees who earn amounts in ...

The Trump-era promise to shield service workers' tips and overtime from federal tax has finally arrived in the form of detailed Internal Revenue Service rules, and the fine print matters as much as ...

A new deduction allows workers to subtract part of their overtime wages from their 2025 taxable income, lowering some taxpayers' bills in April. However, workers will need to calculate their deduction ...