Not quite. Prior to being enacted and signed into law last year on July 4, the One Big Beautiful Bill Act (“OBBBA”) was touted for its provisions calling for “No Tax on Tips” and “No Tax on Overtime,” but these tax benefits are not as sweeping as they sound. This article focuses on the parameters of the overtime pay tax deduction in particular.
Eligible employees are able to claim the tax deduction on their federal tax returns beginning this tax season for tax year 2025,
Keep reading


