[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302423-105":53,"doc-detail-302423-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","94141_npmhu_update_jan-26_low_w_marks-tax-on-overtime","94141_NPMHU_Update_JAN-26_Low_w_marks - Tax on Overtime","","Explains the federal “No Tax on Overtime” message and clarifies that a limited overtime tax deduction applies for 2025 through 2028. The deduction covers only the “half” portion of time-and-a-half pay for FLSA overtime, subject to an annual cap ($12,500; $25,000 joint) and phase-out thresholds. Eligibility depends on claiming on the tax return (including Social Security number) and filing jointly if married. Also outlines which overtime qualifies, notes payroll withholding still occurs, and adds guidance on correcting NPMHU union dues codes.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/94141_npmhu_update_jan-26_low_w_marks-tax-on-overtime/302423/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/94141_npmhu_update_jan-26_low_w_marks-tax-on-overtime/302423.png","ImageObject",442,249,{"name":88,"@type":89},"Evangeline","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-27","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":76},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What does the “No Tax on Overtime” claim mean in practice?","Question",{"text":108,"@type":109},"The statement is a catchphrase. Only a restricted federal income tax deduction applies to certain FLSA overtime, and not all overtime becomes tax-free.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How is the deductible amount for overtime determined?",{"text":113,"@type":109},"The deduction applies to the “half” portion of time-and-a-half compensation. Using the provided rates, the “half” portion equals $18.29 per hour for the example Level 4 top-step Mail Handler.",{"name":115,"@type":106,"acceptedAnswer":116},"What rules determine whether overtime is eligible for the deduction?",{"text":117,"@type":109},"Only overtime that qualifies as FLSA overtime is eligible. Overtime beyond what FLSA requires (such as certain National Agreement conditions) is not eligible, and leave hours can affect whether the 40-hour FLSA workweek threshold is met.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302423,1790301197,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":76,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":9,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":4},13056703019662,"https://ap-avatar.wpscdn.com/avatar/be000253a8e92610077?_k=1778726343310543188","NATIONAL HEADQUARTERS: 815 16th Street, N.W. • Suite 5100 • Washington, D.C. 20006 • (202) 833-9095   \nTAX ON OVERTIME?  \nThe Reconciliation Bill that passed Congress  \nwas signed into law on July 4, 2025, as Pub  \nlic Law 119-21 contained provisions for “No Tax on Tips”,“No Tax on Overtime”,“No Tax on Car Loan Interest”, and several other provisions. The “No Tax on Overtime” is only a catchphrase that interests most Mail Handlers. It sounds great! However, it is not as great as it was advertised. It sounded like there would be no federal income taxon all paid overtime hours. The truth is that the new federal income tax on overtime is restricted and limited. It does not make all overtime tax-free!  \nThis is a new tax deduction, effective for 2025 through 2028. Individuals that receive overtime compensation may deduct the pay that exceeds only their regular rate of pay – that is, the “half”portion of “time-and-a-half” compensation. Which is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2 .  \nWhat does the “half” portion of “time-and-ahalf” compensation, required by FLSA equal? The straight time salary rate for a Level 4 top step Mail Handler is $36.57 an hour. The overtime salary rate for a Level 4 top step Mail Handler is $54.86 an hour. The “half” portion of the “time-and-ahalf” compensation is $18.29 an hour. ($54.86 minus $36.87, equals $18.29) Only this “half” portion is deductible. But there are restrictions.  \nThe deduction restrictions include: the maximum annual deduction is $12,500 ($25,000 for joint filers) and the deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers) . The cap on the deduction ($12,500/$25,000) is only a deduc-  \ntion. It does not mean that you will have that dollar amount of overtime tax-free.  \nThe Postal Service will be sending a Supplemental Form W-2 Data – Tax Year 2025 letter to employees regarding the tax deduction for the premium portion ofFair Labor Standards Act (FLSA) overtime that some employees may be eligible to take under the One Big Beautiful Bill Act. The letter will identify the overtime an employee was paid in 2025 that qualifies for the deduction.  \nThe overtime deduction is available to both those who itemize their deductions and those who use the standard deduction. To be eligible to claim this deduction you must include your Social Security Number on the tax return and must file jointly if married. If you are married, you cannot file tax returns separately, to claim this deduction!  \nWhat is FLSA Overtime? The Fair Labor Standards Act (FLSA) is a federal statute which applies to the Postal Service. The FLSA provides that the Postal Service must pay an employee covered by the overtime provisions of the Act at one and one-halftimesthe employee’s regular rate for all hours of actual work in excess of 40 hours in any FLSA workweek. FLSA is defined as actual work or all time which management suffers or permits an employee to work. Actual work does not include any paid time off.  \nBecause the deduction is only available for FLSA overtime, overtime that Mail Handlers receive under the National Agreement that is beyond what the FLSA requires is not eligible for the deduction. For example, if you have paid leave in a work week while also working overtime in the same work  \nweek, the overtime you received for work in excess of 8 hours in a day may not be deductible because you did not work more than 40 hours in a week. The FLSA limitation can also affect MHAs. For example, ifan MHA works four (4) hours of overtime early in a work week-but is not scheduled for a total of forty (40) hours – working only thirty-eight (38) straight time and overtime hours in a week combined, the four (4) hours of overtime is not deductible. You must have worked beyond forty (40) hours in week (not counting leave hours) in order for overtime compensation to be deductible.  \nRemember, this is just a tax deduction; it","cbCainXu200GBx4f","https://ap.wps.com/l/cbCainXu200GBx4f","pdf",5787726,"English","# Tax on Overtime\n## Deduction scope and effective years (2025–2028)\n## Calculation of the deductible “half” portion\n## Annual cap and income phase-out\n## Eligibility and filing requirements\n## What qualifies as FLSA overtime\n# Union Dues Codes\n## Correct NPMHU union code (H)\n## How to correct incorrect dues payments","[{\"question\":\"What does the “No Tax on Overtime” claim mean in practice?\",\"answer\":\"The statement is a catchphrase. Only a restricted federal income tax deduction applies to certain FLSA overtime, and not all overtime becomes tax-free.\"},{\"question\":\"How is the deductible amount for overtime determined?\",\"answer\":\"The deduction applies to the “half” portion of time-and-a-half compensation. Using the provided rates, the “half” portion equals $18.29 per hour for the example Level 4 top-step Mail Handler.\"},{\"question\":\"What rules determine whether overtime is eligible for the deduction?\",\"answer\":\"Only overtime that qualifies as FLSA overtime is eligible. Overtime beyond what FLSA requires (such as certain National Agreement conditions) is not eligible, and leave hours can affect whether the 40-hour FLSA workweek threshold is met.\"}]","94141_NPMHU_Update_JAN-26_Low_w_marks - Tax on Overtime | PDF",1789792776]