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Overtime deduction for hourly workers

Up to $12,500/yr

Can You Write Off Overtime Deduction for Hourly Workers?

Short answer: Yes for 2025-2028: the half-time premium part of overtime pay is deductible up to $12,500 ($25,000 joint).

Only FLSA overtime counts, and it phases out above $150,000 ($300,000 joint).

Records to keep: Keep receipts, 1099s and platform tax summaries, a mileage log, and a note of the business purpose.