12/28/2025
2025 Tax Year Update #1:
A tax deduction of up to $12,500 ($25,000 for married couples filing jointly) is available for overtime pay. However, it is crucial to understand that only the "time-and-a-half" component, which represents the excess amount beyond your regular hourly rate, is eligible for deduction. To illustrate, if your hourly wage is $20, your overtime rate would be $30, and the deductible amount would be $10/hour.
The deduction is phased out for individuals with incomes exceeding $150,000 (single) or $300,000 (married filing jointly).
*****Please note*****your 2025 W-2 may not specify this amount, so it is essential to obtain the necessary information from your final paycheck stub or employer. I will be verifying this information for all individuals to ensure you don’tmiss out. 😉 all information is subject to applicable tax laws and is dependent on personal circumstances