When does no tax on overtime start?

[jasminsain]

When does the “no tax on overtime” rule actually start? I’ve been hearing a lot about changes to overtime taxation, but it’s not clear when these rules take effect or who qualifies. Does it depend on income level or employer type? If anyone has accurate details or recent updates, please share.

 

[denjoshep]

Putting a fraud warning is effective as this instructs lenders to go an extra mile before approving new credit. This will complicate anyone who may be misusing your information as you challenge wrong information. It also warns the creditors that something can be amiss, which will avoid making more mistakes or possible fraud.

 

[kebido]

Putting up a fraud warning works well because it tells lenders to take additional care before granting new credit. As you contest false information, this will make it more difficult for anyone who might be abusing your information. Additionally, it alerts creditors to potential problems, preventing further errors or potential fraud.

 

[Lily]

The federal tax deduction on qualifying overtime pay for eligible U.S. workers started retroactively on January 1, 2025. The provision, part of the One Big Beautiful Bill Act signed into law on July 4, 2025, is currently scheduled to remain in effect through December 31, 2028.

 

[Rick_Grimes]

Overtime is taxed in the same way as your regular salary; there is no distinct "no tax on overtime" rule. You only pay less tax on overtime if your total yearly income is in a lower tax bracket or if your taxable income is lowered by exemptions or deductions. If not, overtime compensation is taxed normally and added to your regular income.

 

[Emly]

The “No Tax on Overtime” rule starts for overtime earned on January 1, 2025.

 

[jainnorton]

As part of the One Big Beautiful Bill, the federal "No Tax on Overtime" deduction went into effect in July 2025.

All eligible overtime income earned between January 1, 2025, and the end of 2028 is eligible for the deduction, which is retroactive. In early 2026, when you file your 2025 tax return, you will claim it.

 

[Mayank]

No tax on overtime starts for overtime earned from January 1, 2025, and you can first claim the deduction when you file your 2025 tax return in early 2026.