🔥 NEW TAX BREAK: No Tax on Overtime for 2025!
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, bringing major tax relief for hourly workers. Learn how the no tax on overtime provision could save you thousands in 2025!
What You'll Learn:
✅ Who qualifies for the no tax on overtime deduction
✅ How much you can save (up to $12,500 single/$25,000 married filing jointly)
✅ Real examples of tax savings calculations
✅ When the benefit starts and ends (2025-2028)
✅ Income limits and phase-out rules
✅ What employers need to track and report
Key Takeaways:
- Applies to non-exempt W-2 hourly employees only
- Must be FLSA qualifying overtime (time and a half after 40 hours)
- Only the premium portion (extra 0.5x) qualifies for deduction
- Retroactive to January 1, 2025
- Federal income tax only (not Social Security, Medicare, or state taxes)
- Phase out begins at $150K single/$300K married filing jointly
Example Scenario: Making $20/hour, working 50 hours/week = potential $1,100 annual tax savings for someone in the 22% tax bracket!
💡 Important: This is educational content only. Always consult a qualified tax professional for personalized advice.
