did the bill pass for no tax on overtime?

A

alenaghose

Member
Hey everyone, I heard there was a bill proposed to exempt overtime pay from taxes. Does anyone know if this bill actually passed or is still under consideration? It would be great to get an update on where things stand. Thanks!
 
Yes, the bill passed in July 2025. It allows workers to deduct up to $12,500 ($25,000 for joint filers) of overtime premium pay from federal taxable income through 2028. It’s not a full exemption—state and payroll taxes still apply, and higher earners may be phased out from eligibility.
 
Yes — the proposal to exempt overtime pay from federal income tax has officially passed into law. The “One Big Beautiful Bill Act” (H.R. 1) was signed by President Trump on July 4, 2025, and includes a provision allowing eligible workers to deduct up to $12,500 per individual ($25,000 for joint filers) of overtime pay from their taxable income for the years 2025 through 2028, with phase‑outs beginning at $150,000 (single) and $300,000 (joint) modified adjusted gross income. So yes — the bill has passed, the president has signed it, and once final IRS guidance is released, qualifying taxpayers will be able to claim the deduction on their 2025 returns filed in 2026
 
Yes — the bill has now officially passed into law, effective July 4, 2025, under the One Big Beautiful Bill Act. It provides a new deduction that allows eligible workers to exclude up to $12,500 annually ($25,000 for joint filers) in qualified overtime pay from their federal taxable income. This applies only to overtime mandated under the Fair Labor Standards Act (FLSA) and phases out at incomes above $150,000 (or $300,000 for joint filers).
 
You must log in or register to reply here.
Back
Top