2025Beautiful Bill Act (OBBBA) - Public Law 119-21, 139 Stat. 72No Tax On Overtime PaymentJanuary

2025Beautiful Bill Act (OBBBA) - Public Law 119-21, 139 Stat. 72No Tax On Overtime PaymentJanuary - December 2025
Taxpayer Name:
SSN:
Employer:
EIN #:
Based Hourly Pay Rate:
Overtime Per Hour Rate:
Total Overtime Hours Worked:
Total Overtime Paid for 2025:
What is No Tax on Overtime?
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
Who qualifies for No Tax on Overtime?
Many workers who log overtime hours qualify for No Tax on Overtime.
Non-exempt employees
Workers must be non-exempt, meaning they're eligible for overtime pay, and receive a W-2 or 1099. Non-exempt employees are often hourly workers, but the Department of Labor considers some salaried employees earning under $684 per week to be non-exempt as well.
Taxpayers with MAGI under $275,000 (or $550,000 for married couples)
The No Tax on Overtime deduction starts to phase out for single filers with a MAGI of $150,000 or higher ($300,000 for joint filers).
NOTE:
Paycheck stub from January - December 2025 to get total overtime amount paid per pay period.
Annual Qualified Overtime Hours Worked:
Base Hourly Pay Rate:
Estimated Deductible Amount:
Signature:
Date:

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2025Beautiful Bill Act (OBBBA) - Public Law 119-21, 139 Stat. 72No Tax On Overtime PaymentJanuary - December 2025