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.

 

[masur]

The new no tax on overtime statement starts with taxes year 2025 and is applicable to the overtime earned after 1 st January 2025. This does not mean that workers will not reap the results in their paychecks, only that it will be reflected when they will be filing their tax returns in 2025. The exemption of taxes is limited to overtime pay that is qualifying.

 

[Kevin]

The U.S. does not currently have any federal law to eliminate tax on overtime payment. There is no confirmed start date as to when tax on overtime is imposed. The overtime wages are still taxable by the federal, state and payroll taxes unless this is altered by legislations.

 

[jatin]

The no tax on the overtime applies to the overtime work done after or on January 1, 2025, despite the fact that the law was signed later in 2025. When you fill out your 2025 federal tax return by the early of 2026, you will be filing the benefit. The rule is now fixed to run till December 31, 2028.