10/25/2026
Working overtime this year? Keep your pay statements.
The federal deduction for qualified overtime generally covers the extra premium above your regular pay rate, such as the extra half in time-and-a-half. It does not cover every dollar earned during overtime hours.
The pay must meet federal eligibility rules, and income limits and other restrictions apply. Social Security and Medicare taxes are not eliminated by this deduction.
Save this reminder and bring your overtime records to your tax appointment.