No tax on overtime
Up to $12,500
How Does the No Tax on Overtime Deduction Work?
Short answer: Yes, for 2025-2028 you can deduct the extra half of time-and-a-half overtime pay, up to $12,500 ($25,000 joint).
Only FLSA-required overtime counts; phases out above $150,000 of income ($300,000 joint).
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
No tax on overtime
Typical range: Up to $12,500
Individuals / Personal Taxes
Yes, for 2025-2028 you can deduct the extra half of time-and-a-half overtime pay, up to $12,500 ($25,000 joint).
Business justification
Yes, for 2025-2028 you can deduct the extra half of time-and-a-half overtime pay, up to $12,500 ($25,000 joint). Only FLSA-required overtime counts; phases out above $150,000 of income ($300,000 joint).
Category
- Personal Tax Deductions